A share purchase plan (SPP) from Forrestania Resources Ltd (ASX:FRS) has raised $395,750 to support drilling and exploration at the Bonnie Vale Gold Project near Coolgardie in Western Australia.
Funds raised from the SPP, along with $344,000 from a recent share placement, will be used to partly fund drilling and exploration at Bonnie Vale, along with other exploration programs, new project reviews and working capital expenses.
Forrestania Resources chair John Hannaford said: “This sets up the company for upcoming drill programs and fieldwork as we expand on the recent Ada Ann drill program.”
The company 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.
Pleased with the SPP uptake
The SPP, which closed on November 8, offered eligible shareholders the opportunity to subscribe for new shares up to a maximum value of $30,000 per eligible shareholder. The company will issue 31,660,000 new shares at an issue price of $0.0125 per share.
Hannaford said the company was “pleased with the uptake and support of shareholders for the share purchase plan.
“We will work with the broker to the issue, Sandton Capital Advisory, to place the shortfall once shareholder approval at the AGM is forthcoming.”