Forrestania Resources Ltd (ASX:FRS) is poised to kick-off a combined placement and share purchase plan (SPP) for up to $950,000 with proceeds to go to gold exploration programs, particularly at the Bonnie Vale Project near Coolgardie in Western Australia.
The company is seeking $344,000 through a placement of 27.5 million shares and a further $607,000 through a SPP with 48.5 million shares on offer.
FRS intends to follow up promising drilling results from the Bonnie Vale Project, which included grades up to 7 metres at 5 g/t gold, 6 metres at 6.5 g/t and 16 metres at 2.6 g/t from between 4 and 24 metres of depth.
The project has also historically generated soil samples of up to 49 g/t gold in geochemical drilling, adding another layer of prospectivity.
Read: Forrestania Resources to drill Bonnie Vale Gold Project in prolific gold discovery region
Leveraging bullish gold market
“The market support for the capital raising gives the company a runway to accelerate exploration programs at our highly prospective Bonnie Vale Project starting with the Adan Ann drilling, planned for later this month, to be followed by regional and follow-up drill programs at this highly prospective gold project,” Forrestania chair and CEO John Hannaford said.
“This sets the company up for several potential re-rate opportunities in a very bullish gold market.
“We look forward to bringing current and new investors along for the journey.”
Forrestania will use $400,000 of the new funding for the Bonnie Vale program, $200,000 for other exploration programs and the remainder for working capital, project review and capital raise costs.
The capital raise will open on October 15 and close on October 31, with shares to be issued under the SPP by November 6.