www.silverlakeresources.com.au
Silver Lake Resources (ASX: SLR) is a gold producing and exploration company with a resource base of 3.3 million ounces in highly prospective regions including the Mount Monger goldfield and the Murchison (Tuckabianna, Comet and Moyagee).
Silver Lake Resources' strategy is to develop large production centres at Mount Monger and at the Murchison with multiple mines at each centre. Silver Lake's exploration program is targeting 5 million ounces of gold in resource.
Silver Lake seeks $70 million for Murchison gold and copper activities
Silver Lake Resources (ASX: SLR) is set to raise up to $70 million to develop the Murchison Gold Project and accelerate copper exploration.
The money will be raised through the placement of up to 20.6 million shares at an issue price of $3.40 per share to institutional and other sophisticated and professional investors.
The issue price is a 5.7% premium to Silver Lake’s 20-day volume weighted average price.
Settlement of the placement is currently scheduled to take place on 23 November with anticipated quotation and trading of the new Shares on the ASX on 24 November 2011.
Silver Lake managing director Les Davis said the placement, which is not underwritten, is well supported by the market.
“We are delighted by the strong support received for the placement from a large number of existing and new Australian, North American and European institutional investors,” Davis said.
“Monies raised from the placement will be used to develop the Murchison Gold Project and accelerate copper exploration activities at the Eelya Complex. Our strategy has been to build a significant gold business based on exploration success and operating multiple mines at Mount Monger and the Murchison. This is a significant step in implementing this strategy.”
Silver Lake recently identified the potential for copper at the Murchison Gold Project, starting diamond drilling on the Eelya Complex to target four large electromagnetic conductors located from surface geophysics.
Assays from seven holes of a nine hole program drilled at Hollandaire, within the Eelya Complex, show significant high grade copper, gold and silver mineralisation in massive sulphide zones.
The company has confirmed grades of up to 45% copper, 5.5 grams per tonne (g/t) of gold and 256g/t silver at the project
This is in addition to a gold Resource of 15.5 million tonnes at 3g/t gold for 1.5 million gold ounces.
Silver Lake has previously announced plans to establish a mining Reserve for the Murchison Project by the end of 2011.
