Tyranna Resources Ltd (ASX:TYX) will use $2.55 million to be raised in a heavily oversubscribed placement to advance the newly acquired Eureka Gold Project in Western Australia.
There were 150 million shares placed at $0.017 per share in the capital raising managed by CPS Capital.
Placement includes options
The placement will also include the issue of one free attaching option for every two shares taken up, subject to shareholder approval.
Listed options are exercisable at $0.04 expiring on 6 October 2021.
The funds will be directed towards exploration at Eureka, acquisition costs for the project, new opportunities and working capital.
Strong support for placement
There was strong market and shareholder support for the capital raising and the four company directors intend to subscribe for $10,000 worth of shares each on the same terms.
The company intends to convene a general meeting to seek all necessary approvals shortly.
READ: Tyranna Resources gets busy as it progresses gold strategy
Tyranna has submitted a program of works to the Department of Mines to conduct a reverse circulation drilling program at Eureka.
The Eureka project is northwest of Kalgoorlie.
This program will follow-up historical bonanza gold hits 600 metres to the north of the Eureka pit.
These historical intersections include 4 metres at 134 g/t gold from 53 metres, 4 metres at 33.7 g/t from 42 metres and 1 metre at 25.5 g/t from 58 metres.
High priority targets
A comprehensive review of available geological and geophysical data has been completed and the company has identified several high priority targets.
The drilling is planned to confirm the historical results, the orientation and continuity of the mineralisation.