THE BOURSE WHISPERER: Breaker Resources (ASX: BRB) has agreed to a non-brokered $8 million share placement to Electrum Strategic Opportunities Fund II LP, a major US-based private equity fund focused on precious metals.
The placement consists of approximately 23 million newly issued shares being undertaken at 35 cents a share.
Breaker Resources indicated the proceeds of the placement will be used to ramp up reverse circulation (RC) and diamond drilling aimed at growing the one million-ounce Bombora Resource at the company’s Lake Roe gold project near Kalgoorlie in Western Australia.
“Breaker welcomes the support of a prominent North American institutional fund and their support is seen as an expression of confidence in the growth potential of the company’s Lake Roe gold project,” Breaker Resources said in its ASX announcement.
“The placement follows a strategic review undertaken by Breaker aimed at unlocking the full value of the company’s Lake Roe gold project.
“As a result of the strategic review, the Board has formed the view that the best way to deliver value to shareholders is to expand the Resource base through further drilling.
“The company has consequently placed the Lake Roe pre-feasibility study on hold and has decided to partner with Electrum with the shared objective of advancing the Lake Roe project along the value chain through expansion of the project’s existing Resource.”