Pioneer Resources placement banks exploration funds

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) has completed a placement of new fully paid ordinary shares to professional and sophisticated investors, including Directors, raising $525,000.

The capital raising placed new share to clients of Bell Potter Securities, and other investors with Pioneer receiving firm commitments amounting to 35 million Shares at 1.5 cents per share.

Pioneer said the funds have already been earmarked to be spent on further exploration programs to be undertaken at the company’s Acra gold project, as well as contributing additional working capital.

“On behalf of the Board, I thank shareholders who participated in this offer, and extend that thanks to all shareholders for their on-going support, as we advance the company’s exploration assets,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

Earlier this month, Pioneer announced high-grade gold intersections returned from drilling at the Kalpini South prospect, located within the Acra gold project.

The company’s next round of exploration programs are scheduled to commence in December 2015 and will include:

Down plunge diamond drilling of the emerging high-grade gold lode at the Kalpini South prospect;

RC drill testing for shallower supergene gold mineralisation overlaying the high-grade gold lode;

Aircore testing a new gold-in-soil geochemistry called the Kalpini Knight prospect, located 120 metres south of, and parallel to, the Kalpini South prospect; and

Aircore testing of three EM conductors near Kalpini South.

Mineralisation at Kalpini South has an associated EM conductor.

Pioneer is presently carrying out drilling at the Fairwater nickel project, where the first hole is coming close to completion.

The company explained this is happening later than it anticipated due to issues that arose with drilling water supply, however steps have been taken to mitigate further problems by establishing a closer water supply and through improvements to water re-circulation ahead of the commencement of the second hole.