THE BOURSE WHISPERER: Stavely Minerals (ASX: SVY) announced a capital raising of up to $3.5 million to fast-track exploration of its portfolio of gold, and porphyry copper-gold projects in Western Victoria and Queensland.
Stavely Minerals explained the capital raising has been underpinned by a Share Placement of 13.33 million shares at 15 cents per share to sophisticated and institutional investors to raise $2 million.
To supplement the placement, Stavely is also conducting a Share Purchase Plan (SPP), also at 15 cents, to raise up to a further $1.5 million so existing shareholders don’t feel left out.
Stavely indicated the funds raised through the combined Share Placement and SPP will be put towards the acceleration of drilling programs on its Queensland projects targeting breccia-hosted gold mineralisation, as well as in Western Victoria, where the company is targeting porphyry copper-gold mineralisation.
“This reflects both the quality and prospectivity of our key projects, and the fact that we have a very full program of drilling activity both in Queensland and Victoria over the coming months which should generate strong news-flow on multiple fronts,” Stavely Minerals managing director Chris Cairns said in the company’s announcement to the Australian Securities Exchange.
“Over the past 18 months we have developed a suite of exceptional discovery opportunities, and we appreciate that shareholders have had to demonstrate outstanding patience as the company navigated the lengthy process of securing Victorian Government co-funding for our forthcoming exploration programs.
“However, with more than $1 million in Government funding now in place, and with the proceeds of this capital raising, Stavely is exceptionally well placed to unlock the value of this highly prospective exploration portfolio.
“We have now launched into a major drilling and geophysical program, which is expected to continue over the next several months.
“Drilling has already commenced in Queensland testing an outstanding breccia-hosted gold target and will continue for approximately four to six weeks and, once completed, drilling will then commence on our suite of three Victorian porphyry copper-gold targets.”