Great Southern Mining Ltd (ASX:GSN) has raised $3.12 million in an oversubscribed placement to accelerate exploration programs at the Cox’s Find and Mon Ami gold projects in Western Australia.
The company is now well-funded with drill rig mobilisation expected in the first week of December while geochemical programs will also continue at the large-scale Edinburgh Park project in north Queensland.
Shaw and Partners Limited acted as sole lead manager to the placement at 8 cents per share which was strongly supported by new and existing shareholders.
Laverton exploration
Aggressive exploration programs will commence shortly at Mon Ami and Cox’s Find following successful drilling earlier in 2020.
GSN chief executive officer Sean Gregory said: “We are pleased to have secured funding enabling us to accelerate our planned drilling activities in the Laverton region.
“The 2020 drilling programs at Cox’s Find and Mon Ami have delivered the company some excellent outcomes.
"The additional and highly prospective regional tenure we have acquired during the last six months has also seen GSN establish what is now a substantial landholding within the Duketon belt, with some of the dominant regional mineralised structures running right through our tenements.
“Drilling at these two projects is set to commence shortly and we expect a strong flow of results from these programs over the coming months.”
Edinburgh Park targeting
Gregory said: “We are also now well-funded to continue the extensive geochemical program underway at our large-scale Edinburgh Park Project in northern Queensland.
“This program has been designed to generate drill-ready targets for planned testing in the June 2021 quarter.
“The greenfield discovery potential of Edinburgh Park is considerable and we look forward to having the opportunity to rapidly progress that.”
Placement structure
The structure of the placement is:
- 39 million fully paid ordinary shares at 8 cents per share; plus
- One free attaching listed option (ASX:GSNOA) for every four placement shares issued, with an exercise price of 5 cents per share and expiry date of September 4, 2022 (listed options).
Placement shares and listed options will rank equally and carry the same terms as the securities on issue and will be issued within the company’s existing capacity under Listing Rules 7.1 and 7.1A.
The issue price of 8 cents per share represents a 5.8% discount to the last GSN closing price of 8.5 cents and a 6.4% discount to the 15-day volume-weighted average price for GSN.