PERTH (miningweekly.com) – Junior gold explorer BMG Resources will raise A$4-million in a share placement to fund exploration at its Western Australian gold project.
The ASX-listed company on Monday said that it would place some 80-million shares, at a price of 5c each, with an initial A$3-million to be raised under the company’s existing placement capacity.
A second tranche placement to raise a further A$1-million will be subject to shareholder approval at a general meeting scheduled for August.
Proceeds from the placement will be used to fund drilling and exploration programmes in Western Australia, BMG said, including a follow-up drilling campaign at the Abercromby gold project, and a maiden drill programme at the Invincible project.
“Our maiden drill programme at Abercromby returned results displaying width and grade that supports the presence of a significant volume of gold mineralisation. We are excited to be progressing to a follow-up drill programme at Abercromby that will be designed to further scope the extent of this high-grade gold mineral system,” said BMG MD Bruce McCracken.
“Initial work at Invincible has identified targets for potential gold mineralisation, and we are pleased to also advance further drill and exploration programmes for this gold project.”