Buxton Resources (ASX:BUX) has successfully completed a bookbuild to raise up to $4 million from sophisticated and professional investors via the issue of shares at $0.23 each.
The placement was particularly well supported by existing shareholders.
Funds raised from the placement will be used to fund drilling programs at Buxton's Double Magic nickel-copper project in Western Australia, expected to commence in late May / early June.
The company is planning to carry out circa 10,000 metres of phase 1 reverse circulation and diamond drilling at Double Magic.
Buxton’s drilling will focus on the extent of existing mineralisation encountered at the Merlin prospect induced polarisation (IP) anomaly.
The IP anomaly is over 2 kilometres in length and extends from 60 metres below surface to beyond 500 metres at the eastern end.
Importantly, the mineralisation across a 700-metre strike and proximal to the anomaly has been mapped and sampled by Buxton with values up to 1.52% nickel and 1.4% copper returned.
The company now plans an aggressive and thorough work program to assess the true potential of the project to host economic nickel sulphide deposits.
Buxton’s share price increased more than 70% since the start of 2017, last trading at $0.25.