Rubianna Resources (ASX: RRE) plans to raise up to A$2.24 million to fund an accelerated drilling campaign at the Murchison Projects in Western Australia.
Funds from the capital raising would support extensive exploration to pursue highly encouraging exploration, with a further series of reverse circulation drilling programs planned for the expanded Bloodstone prospect, plus extensive aircore drilling programs at the North Ruby Well prospect.
Further exploration at the Killara prospect will also be completed, with the aim of generating drill targets later this year.
Last month Rubianna identified two potential high grade gold shoots at the Bloodstone Project, and started a program of infill geochemical soil sampling on copper and gold anomalies at the Killara Project, both part of the Murchison tenements.
The A$2.24 million is being sought through a A$840,000 share placement and a A$1.4 million share purchase plan.
Share placement funds will be raised via the placement of 7 million shares to sophisticated investors at an issue price of A$0.12, with a free attaching option for every two shares issued, exercisable at $0.10 and expiring on December 31, 2012.
This will be followed by the share purchase plan, and allow all eligible shareholders the opportunity to subscribe for up to A$15,000 worth of new shares at A$0.12 each, without incurring brokerage costs or commissions.
Bloodstone gold intercepts
Highlights from the recent reverse circulation drilling program at Bloodstone returned multiple high grade gold intersections, including:
- 5 metres at 21.8 grams per tonne (g/t) gold, including 1 metre at 108g/t gold;
- 4 metres at 10.9g/t gold, including 1 metre at 43g/t gold; and
- 5 metres at 4.2g/t gold, including 1 metre at 19.1g/t gold.
The next drill program will focus on testing the continuity of the system to the west, where it remains open, and look for repetitions at depth.