Doray cashed up to advance Andy Well

THE DRILL SERGEANT: Doray Minerals (ASX: DRM) is eager to spend the proceeds of a $17 million capital raising.

Doray has announced plans to accelerate drill testing of a number of high-quality, near-mine exploration targets at the company’s 100 per cent-owned Andy Well gold project near Meekatharra in Western Australia.

The company will be utilising funds received from the raising primarily to advance the high-grade Judy and Suzie target zones and to carry out first-pass drilling of the Margaret and Kirsty structures.

 

Andy Well gold project showing interpreted geology and structural zones for drill testing. Source: Company announcement

 

The funds will also be spent on regional exploration, project generation and business development activities.

Doray said the placement to existing and new domestic and institutional investors, of approximately 21 million fully paid ordinary shares at a price of 80 cents per share, will the company to accelerate its systematic exploration of the Andy Well gold project in the near term while making the most of the very competitive drilling rates on offer at the moment.

“We have some very high quality near-mine exploration targets within the Andy Well project that we are looking forward to testing over the upcoming months and we believe that accelerating the drilling program at Andy Well could provide a significant positive return for shareholders in the near term,” Doray Minerals managing director Allan Kelly said in the company’s announcement to the Australian Securities Exchange.

“This capital raising will give us the ability to rapidly advance a number of these targets with the aim of adding to the project mine life in the near term whilst maintaining the aggressive debt repayment schedule, which should see the company pay off the $55 million project finance facility by 30 September 2014.”

Email: info@dorayminerals.com.au

Website: www.dorayminerals.com.au