THE BOURSE WHISPERER: Stavely Minerals (ASX: SVY) completed a capital raising of up to $8.3 million to be spent on fast-tracking exploration of the company’s gold and porphyry copper-gold projects in western Victoria and Queensland.
Stavely Minerals explained the capital raising was underpinned by a Share Placement of 20 million shares at 34 cents per share to sophisticated and institutional investors to raise $6.8 million before costs.
Stavely has not left its existing shareholders out of the fun and is undertaking a Share Purchase Plan (SPP), also at 34 cents, to raise up to a further $1.5 million.
The company indicated the funds raised through the combined Share Placement and SPP will primarily be used to accelerate drilling programs in western Victoria testing a suite of porphyry copper-gold targets, including advanced exploration at the Thursday’s Gossan prospect where recent deep diamond drilling has delivered results indicating proximity to a potentially large-scale copper-gold porphyry.
Follow-up exploration programs are also planned this year on the company’s Queensland projects targeting epithermal and intrusive-related gold mineralisation.
“Over the past 18 months we have been systematically narrowing in on a potential copper-gold porphyry discovery at the Thursday’s Gossan prospect and we are now well funded into the next phase of exploration drilling at this very exciting prospect,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.
“And, with a recent Earn-in and Joint Venture Agreement in-place with Navarre Minerals, Stavely Minerals has further augmented a dominant tenure position in an under-explored alkalic copper-gold porphyry belt.
“With drill testing also about to commence at the exciting Toora West porphyry target, we have the opportunity to highlight multiple discovery opportunities within the belt – and therefore to realise greater value for shareholders by emphasising that Stavely Minerals could have its foot on an entire porphyry belt rather than just one very exciting prospect.
“This is a key attribute that can enhance Stavely’s attractiveness to the larger gold and resources companies.”