Yandal Resources Ltd (ASX:YRL) has locked in firm commitments for a $13.5 million placement to fast-track and expand its exploration efforts across several high-priority targets in Western Australia’s Yandal Greenstone Belt.
The capital raise will see 46.4 million new shares issued at $0.29 apiece — representing a 4.4% discount to the five-day volume-weighted average price (VWAP) and a 9.4% discount to the last traded price before the September 26 trading halt.
Following settlement, the explorer will hold about $16.1 million in cash, excluding a further $2.81 million expected from the sale of the Gordons Project to Horizon Minerals Ltd (ASX:HRZ) and up to $2.6 million that could be realised from outstanding options before November expiry.
Strong investor backing
The placement attracted bids in excess of the target amount, underpinned by major shareholders and a mix of domestic and international institutional, sophisticated, and professional investors.
Yandal managing director Chris Oorschot said the raise demonstrated confidence in the company’s momentum.
“We are very pleased with this strong show of support by both existing and new shareholders, who we welcome to the Yandal register, in particular our new institutional shareholders,” Oorschot said.
“We have made substantial progress and experienced significant exploration success in recent times,” he added. “We have therefore taken the opportunity to ensure we are appropriately funded to both expand and accelerate exploration programmes across the Caladan target area, and the Arrakis Discovery.
“Our focus is to drive shareholder value through discovery, and Yandal is now in a very strong financial position to execute its plans.”
Funding priorities
Proceeds will be directed towards advancing Yandal’s most promising assets, including:
- expanding drilling across the Caladan target area and Arrakis Prospect;
- exploration at the Ironstone Well-Barwidgee Gold Project, including the New England Granite target and Flushing Meadows deposit; and
- general working capital requirements.
The new shares, which rank equally with existing securities, are expected to be issued and quoted on October 8 following settlement on October 7. Stralis Capital Partners acted as sole lead manager and bookrunner.
Momentum building
The placement comes on the back of Yandal’s ongoing exploration success at Arrakis, where drilling has uncovered fresh rock intercepts extending the discovery zone by more than 400 metres, further underscoring the prospectivity of its Yandal Belt portfolio.
Read more: Yandal Resources extends Arrakis gold discovery by 400 metres with fresh rock intercepts
Yandal Resource exploration Project locations within the Yandal Greenstone Belt
With a strengthened balance sheet and multiple active programs in play, Yandal says it is well positioned to push forward with aggressive exploration across some of WA’s most fertile gold terrain.