Pioneer Resources raises cash for exploration drive

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) plans to undertake a share purchase plan (SPP) to raise up to $2.5 million.

This follows the completion of the placement of approximately 89.3 million new shares at an issue price of 3.6 cents per share, which raised approximately $3.2 million.

Funds raised are expected to be used to fund Pioneer’s ongoing exploration programs at the recently acquired Mavis lithium project in Ontario, Canada, which is to include field surveys and drilling of spodumene-bearing pegmatites.

The company has also indicated it will be looking at further lithium specific project evaluations.

The funds will also be distributed within Pioneer’s extensive portfolio of lithium, gold and nickel projects in Western Australia.

This will entail conducting field surveys and drilling of lithium targets at the Pioneer Dome project, aircore drilling at the Acra gold project, with follow-up RC drilling, and diamond core drilling, subsidised under the WA State Government-funded EIS program, at the Blair nickel project.

“We are delighted with the response from investors to the company’s recent share placement, which we see as strong validation for our ongoing, targeted exploration programs,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are now pleased to offer the SPP to existing eligible shareholders on the same terms as the placement, providing the opportunity to increase shareholdings in the company as it enters a very exciting and active exploration phase.”