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Argent Minerals Ltd attracts new funds at a premium ahead of drilling

Published: 04:00 28 Jun 2016 BST

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Argent Minerals Ltd (ASX:ARD) has attracted sophisticated investors at a 15% premium, based on its share price before a halt was called pending the details.

The heavily oversubscribed raising increased Argent's cash balance by $1.75 million with the issue of shares at $0.03.

Raising funds at a premium in the current difficult capital markets shows a major vote of confidence in the company, and that these investors wanted to be leveraged to the company's future news flow.

Argent has several projects which could be company makers, including the Kempfield project in New South Wales, which currently hosts 21.8 million tonnes at 47g/t silver for 33 million silver ounces, + 300,000 tonnes lead/zinc.

The project recently yielded 1 metre at 1,065g/t gold from 97 metres, and Argent's immediate focus is to advance its existing gold projects at Kempfield.

These include Trunkey Creek and the most recent tenement acquisition to the south containing the historic Pine Ridge gold mine.

Kempfield was peer reviewed by the NSW State Government, and awarded Top 5 funding based on project merit.


Assays pending

More drilling assays are imminent from Kempfield.

Recent drilling has already identified strike and significant depth extensions, with a resource review following receipt of all assays.


West Wyalong

The West Wyalong project remains a potentially very important asset of the company's portfolio.

Argent is progressing its ownership towards a 70% interest, with the new funds to allow it to drill test the Theia and Narragudgil targets for copper-gold/gold.

The project is located only 7 kilometres from the West Wyalong gold fields that produced 445,700 ounces of gold between 1894 and 1921, and is located 37 kilometres to the north of the Lake Cowal mine.

Boosting the prospectivity, West Wyalong is situated in the Macquarie Arc of the Lachlan Orogen, which hosts world-class porphyry copper-gold mines such as Newcrest's Cadia and China Molybdenum's Northparkes.

 

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