NewPeak Metals Ltd (ASX:NPM, OTC:NPMFF, FRA:NPM) has secured A$3.5 million through a strongly supported share placement to advance drilling, resource estimation and broader exploration at its wholly owned Las Opeñas Gold Project in Argentina.
The placement attracted binding commitments for A$3.35 million from new and existing sophisticated and professional investors, while directors and management will contribute a further A$150,000, subject to shareholder approval.
NewPeak will issue approximately 269.2 million shares at A$0.013 each, with demand substantially exceeding the amount raised. The issue price represents a 23.5% discount to the company’s last traded price of A$0.017.
Funds directed toward drilling and resource work
The money will be used to complete the current Las Opeñas drilling campaign, fund a mineral resource estimate and support further geochemical and geophysical exploration.
The company will also allocate part of the capital to general working costs and expenses associated with the offer.
Managing director Mark Purcell said the support demonstrated confidence in NewPeak’s strategy and the emerging potential of Las Opeñas.
“This strongly supported raise is a clear vote of confidence in NewPeak's strategy and the exciting potential we are now unlocking at Las Opeñas,” he said.
“With our first drill hole since 2019 indicating the potential presence of a large-scale gold, zinc and silver system, this injection of funds allows us to press ahead with momentum.”
Las Opeñas shows large-scale potential
The funding follows encouraging results from discovery hole 26-LODH-023, which NewPeak believes indicate the potential for a large-scale gold, zinc and silver system.
Assay results from another five holes, representing about 1,800 metres of drilling, are expected within the next three to five weeks. These results will help guide ongoing exploration and contribute to the planned mineral resource estimation work.
