Meteoric Resources NL (ASX:MEI) (FRA:RNF) has received firm commitments to raise $4 million before costs in a placement to accelerate its extensive gold drilling programs in Western Australia and Brazil.
The capital raising saw the participation of existing cornerstone shareholders, including $1 million from Tolga Kumova and $2 million from an investment syndicate led by legendary resources investor Keith Biggs, as well as $1 million from retail mogul Gerry Harvey.
The company is placing 70,175,439 million new shares at $0.057 per share with a one-for-two attaching three-year unlisted option exercisable at $0.10.
Remarkable drilling results
Meteoric Resources managing director Andrew Tunks said: “We are delighted with the support shown to us by our existing shareholders which will enable us to continue our consistent in the ground exploration spend.
“Despite the global troubles of 2020, the MEI exploration teams have delivered some remarkable drilling results across both our projects. At Juruena, this included JUDD031 14.3 metres at 10.15 g/t gold and JUDD024 14 metres at 11 g/t gold and 1% copper.
“At Palm Springs, in what was our first drilling program, we have extended known mineralisation from the historic Butchers Creek Open Pit over 360 metres south and delivered some amazing results, including BCRD467 69 metres at 4.4g/t gold, including 19 metres at 7.2 g/t gold and BCRD468 55 metres at 3.2 g/t gold.
“To top off a remarkable year, we completed a deep IP/MT survey across the Juruena project and delineated a giant IP chargeability anomaly, which we will drill test in early 2021.
“It is my belief that in 2020, we have provided some of the most consistently exciting exploration news from any junior on the ASX, all underpinned by strong drilling results from both projects.”
Placement details
The placement options will be issued pursuant to ASX Listing Rule 7.1 and settlement is expected to take place in one tranche on the same date.
Once issued, the placement shares will rank equally alongside existing fully paid ordinary shares currently on issue.
Vert Capital Pty Ltd has been appointed broker and lead manager.
Accelerating exploration programs
Funds raised will go towards accelerating exploration programs, including:
➢ Extending drilling further southwest at Butchers Creek to build on the remarkable thick high‐grade results achieved from the maiden drill campaign in 2020;
➢ IP surveys at Butchers Creek (new) and Juruena (extension);
➢ Drilling in early 2021 of new giant IP anomaly beneath Juruena to test for potential major porphyry copper‐gold discovery; and
➢ Development studies at Juruena, including an update of resource estimate.
2021 plans for Juruena
The company said in 2021, there would be several exciting explorations programs in Brazil, including:
➢ A preliminary three-hole, 3,000 metres diamond drilling program in early 2021 to test the core of the IP anomaly defined in December 2020;
➢ Down hole IP on deep drill holes and extending of the existing survey to northwest where the IP chargeability anomaly remains open;
➢ Updating the mineral resource statement for Juruena to include the additional 8,000 metres of drilling completed by in 2019 and 2020; and
➢ Updating the 2016 scoping study for Juruena, which includes the proposed metallurgical process route, open pit and underground mine plans and project economics.