Great Boulder Resources Ltd (ASX:GBR) has received binding commitments for a single tranche placement to raise $5.5 million at a price of 8 cents per share.
The placement introduces several new, high quality institutional, sophisticated and professional investors, whilst also being well supported by existing significant shareholders of the company.
Notably, the proceeds from the placement along with the existing cash reserve will position Great Boulder with a strong cash balance of around $8.7 million to undertake high impact exploration campaigns at the Side Well Gold Project and the Whiteheads Gold / Nickel Project in WA.
Strong validation of WA gold and base metal portfolio
Great Boulder managing director Andrew Paterson said: “We are extremely pleased with the strong demand from new institutional and sophisticated investors, and we also thank our existing shareholders for their continued support.
“This is a strong validation of Great Boulder’s WA gold and base metal asset portfolio, exploration team and strategy.
“The placement positions the company with a strong treasury to accelerate exploration programs at Side Well and Whiteheads and to undertake our maiden exploration program at the exciting new Wellington Project once tenure is granted.
“Investors can look forward to increased exploration activity coupled with strong news flow in the coming months as we continue to work hard to deliver results and create value for our shareholders.”
Use of funds
The placement will enable Great Boulder to fund:
- RC and AC drilling programs at the Side Well Gold Project and Whiteheads Gold Project to follow up significant intersections, target primary gold zones and strike extensions and test multiple high priority regional prospects;
- Maiden exploration program at the 100%-owned Wellington Base Metal Project along strike from Rumble Resources’ (ASX:RTR) recent zinc-lead discovery at the Earaheedy Project; and
- Airborne Electromagnetic survey at Whiteheads to review nickel sulphide potential.
The company is also expecting strong near-term news flow with assays due shortly from the recently completed Mulga Bill RC drilling, Jones Well soil sampling and Whiteheads regional AC drilling.
Great Boulder has also started a regional AC drill program at Side Well Project.