Bulletin Resources places placement shortfall

THE BOURSE WHISPERER: Bulletin Resources (ASX: BNR) has received the nod for a $600,000 funding commitment (before costs) via a share placement at an average issue price of 55 cents per share, representing a 22 per cent premium to the company’s closing share price on 11 March 2013.

The placement is for approximately 10.9 million ordinary shares that were not subscribed for by shareholders when the company announced a share purchase plan in October 2012.

Bulletin said the funds raised under this placement will be put towards exploration and resource expansion drilling at the company’s Lamboo and Golden Crown projects in Western Australia as well as general working capital.

“We are encouraged by the high level of interest being shown in our project and remain committed to progressing discussions on our financing strategy,” Bulletin Resources managing director Martin Phillips said in the company’s announcement to the Australian Securities Exchange.

A feasibility study conducted on the Lamboo project confirmed average production of 28,000 ounces of gold per annum for an initial five years through the existing processing facility.

The company indicate it has a 5,000 metre RC drilling program scheduled for late March, weather permitting.

The drilling at Nicolson’s Find will test the down-plunge extension to a drill result from December 2012 of 4m at 22.3g/t gold in the north of the deposit.

 

Nicolson’s Find RC drilling target. Source: Company announcement

 

RC drilling is also planned for Wagtail South to continue assessment on the depth extensions of the deposit in proximity to drilling, also in December, which returned multiple high grade intersections of 1m at 13.4g/t gold, 3m at 5.8g/t gold and 1m at 6.3g/t gold.

The program will also assess the new open pit targets recently discovered within the Lamboo project at Nicolson’s North and Hyena and at the Shifty’s prospect.

Bulletin said drilling is planned for the Golden Crown project, which it hopes will confirm and raise confidence in the existing resource estimate while exploring for structural repetitions to the mineralisation.