AusQuest Limited (ASX: AQD) is raising up to $2.5 million to fund drilling of nickel-copper targets at its wholly-owned Fraser Range project as well as copper-gold exploration in Peru.
The funds will be raised through a placement of up to 88 million shares priced at $0.02 each to sophisticated and professional investors to raise about $1.76 million and a share purchase plan capped at up to $740,000.
Participants in both the placement and SPP will receive one free attaching option exercisable at $0.04 on or before 30 November 2016 for every two shares subscribed.
Notably, the directors are demonstrating their confidence in the company’s operations with their commitment to collectively subscribe for $500,000 worth of new shares under the placement.
Projects
The company’s wholly-owned Dundas project is located 80 kilometres south of Sirius Resources’ (ASX: SIR) Nova-Bollinger discovery in the Fraser Range, Western Australia.
Clearance surveys have been completed over three high priority drill targets identified by fixed loop electromagnetic surveys at Dundas, with the drilling program set to kick off in the current quarter.
It has also identified priority drill targets for porphyry copper-style mineralisation and iron oxide copper gold at the Cardonal, Puite and Cerro de Fierro prospect areas in Peru, adding to the targets already defined within the Lana and El Jaguay-Azucar prospects.
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