Impact Minerals (ASX:IPT) should trade higher after completing an oversubscribed $2.59 million capital raising through a placement of 78,423,516 shares at $0.033 to sophisticated and professional investors.
Funds will be used for drill programs at the Company’s high grade precious and base metal Commonwealth and Broken Hill Projects in New South Wales.
Raising over $2.5 million for drilling during what is still a tricky capital environment for junior explorers is testament to the quality of IPT management and drill targets.
IPT is now fully funded to drill for high grade mineralisation at Commonwealth and Broken Hill. Ground preparation work is already in progress at Commonwealth in order to commence drilling as soon as possible.
This project lies within the same Molong Volcanic Belt that hosts over 25 million ounces of gold at the Cadia and Ridgeway deposits, in addition to almost 5 million tonnes of copper.
A drill program of about 2,500 metres will begin this month to test a number of geophysical and geochemical targets, together with possible extensions to the previously known high-grade gold-silver-lead-zinc-copper mineralisation.
IPT's zinc exposure is notable with the metals having increased in value markedly in recent weeks. Silver and copper are also performing particularly well.
Historic mine grades at Commonwealth include 6g/t gold, 150g/t silver, 2% copper, 15% zinc and 7% lead.
All statutory approvals have been received and clearing of access tracks and drill sites has commenced.
The drill program at Broken Hill will commence shortly after the Commonwealth campaign has been completed and will comprise about 1,500 metres at the Red Hill Prospect to test a number of targets prospective for nickel, copper and platinum group metals.
IPT's Platinum Springs Prospect at Broken Hill is believed to be Australia's highest grade platinum group metal project, with drill intercepts of over 20 g/t platinum-palladium, 6% copper and 4% nickel.
Historic mine grades here include up to 3% copper, 3% nickel, and 40g/t platinum.
The company has plenty of room to move from its current market cap of $18 million.
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