THE BOURSE WHISPERER: Explaurum (ASX: EXU) informed the market of the completion of a bookbuild to raise up to $4.5 million through a placement of up to 42.9 million shares at an issue price of 10.5 cents per share.
Explaurum said the raising, brokered by Hartleys, involved sophisticated and institutional investors.
The company outlined the expected uses for the funds raised, which include completing an updated JORC Resource for the Tampia gold project in August 2017 following completion of a current drill hole resource program.
Other activities include regional exploration, involving auger soil sampling followed by reverse circulation (RC) drilling across over 20 regional gravity/geochemical targets including 3 high priory targets within a 15 kilometre range of the known resource.
An updated Tampia gold project Scoping Study is anticipated to be delivered in Q3 2017 with a Feasibility Study to be completed the end of H2 2017.
“We are pleased to have successfully completed this heavily oversubscribed placement to enable the rapid progress at the Tampia gold project to continue,” Explaurum managing director and CEO John Lawton said in the company’s announcement to the Australian Securities Exchange.
“The placement was very well supported by our existing shareholders and new institutional and sophisticated investors.
“Explaurum is on the cusp of completing a major resource drilling program at the Tampia gold project and we are on target to deliver an updated JORC Resource in late August 2017, which will be the basis of the recently commenced feasibility study due for completion at the end of 2017.
“During this process, we plan to update the 2016 scoping study in September to provide shareholders and investors with an indication of the project’s potential viability as a standalone operation.
“In addition, there is exciting regional potential based on a 400 square kilometre airborne gravity program completed earlier this year.
“This program discovered three major and 21 other exploration targets with similar geophysical characteristics to the known Tampia deposit, although the three major targets are considerably larger than Tampia.
“Assessment of these targets will commence immediately and proceed in parallel with the feasibility study.”