Meteoric Resources NL (ASX:MEI) has received a show of support from existing shareholders along with leading institutional investors who have committed to a placement, raising $7 million.
These funds will allow the company to accelerate exploration at the Juruena and Novo Astro gold projects in the highly prospective Alta Floresta Gold Belt in state of Mato Grosso, Brazil.
Meteoric is completing maiden drill programs at both projects, which are just 30 kilometres apart.
“True testament” to prospectivity
Managing director Dr Andrew Tunks said, “The support we have received from existing and new shareholders for Meteoric’s Brazilian portfolio of gold assets is a true testament to the sheer prospectivity that exists at both Novo Astro and Juruena.
“As a Board, we are delighted with how our initial exploration of both projects has progressed since acquisition in March of this year and this $7 million placement, which follows the $2.7 million in August, puts us in good stead to accelerate exploration at both our key projects.
“We welcome our new shareholders to the register and thank our existing shareholders for their ongoing support and I look forward to a fruitful 2020 ahead for Meteoric and its shareholders.”
Additional drilling
The placement will see 140 million new shares issued to sophisticated and professional investors at 5 cents per share.
Meteoric intends to accelerate the Brazilian exploration programs including:
- 5,000 metres of diamond drilling at Juruena to expand known resources and test additional targets;
- 3,000 metres of diamond drilling at Novo Astro testing under known artisanal open cast mines;
- 20,000 metres of percussion/aircore drilling at Novo Astro to define the scale of the mineralised system outside historical mining areas; and
- Expand the proposed geophysical programs at Novo Astro and Juruena.
Tunks said, “Following on from the completion next month of the 26 hole, 4,500-metre initial drilling program at Juruena, it is our intention to evaluate our program and plan for the next season of drilling.
“It is anticipated that the new drilling will focus on expanding the known mineralisation at depth at Dona Maria and along strike at Tomate.”
Look at under-drilled targets
He said, “Additionally, we will look at several other under-drilled targets and the largely unexplored Arrasto Hills to the northwest where the strongly altered volcanics demand further investigation.
“Over at Novo Astro, we have two rigs on-site carrying out the first-ever drilling program at the project which comprises 21 holes for approximately 2,500 metres with the first results expected in late November.
“With these new funds we will now look to increase our drilling program with a sharply targeted diamond drilling program and a broader regional reverse circulation/aircore program to define the extent of the massive alteration zones we are seeing in the current drilling.”
Directors to participate
Two company directors have agreed to take part in the placement for which shareholder approval will be sought.
Managing director Dr Andrew Tunks will subscribe for $20,000 in shares and non-executive director Shastri Ramnath will subscribe for $15,000.