Encounter Resources (ASX:ENR) has received firm placement commitments from professional and sophisticated investors to raise circa $2.9 million at $0.10 per share.
The share placement was strongly supported by Encounter’s existing institutional shareholders.
Furthermore, Acorn Capital, a leading global resources fund has joined in as a significant new shareholder.
The proceeds from the placement will be primarily used to advance exploration at Encounter’s Telfer West and East Thomson’s Dome gold projects in Western Australia.
A diamond drill rig is due to arrive at Telfer West this week and a reverse circulation rig is scheduled to commence drilling at Telfer West and East Thomson’s Dome in mid-June 2017.
Earlier this month, Encounter confirmed a high-grade gold exploration opportunity following the review of historical exploration data at the East Thomson’s Dome project.
In addition, a surface prospecting exercise at East Thomson’s over an untested outcropping quartz reef has yielded gold nuggets that are interpreted to be the shedding from the nearby quartz reefs.
Importantly, the East Thomson’s project is located just 5 kilometres from Newcrest Mining’s (ASX:NCM) major gold-copper mine at Telfer in the East Pilbara region.
Encounter is also offering a share purchase plan to existing shareholders to raise up to $500,000 by issuing shares at $0.10 each.