Aldoro Resources Ltd (ASX:ARN) has committed to expanding its 10,000-metre drilling program at the Narndee Igneous Complex in Western Australia.
To cover the program, the company’s board has agreed to a placement of 6 million shares priced at 40 cents to raise $2.4 million to comfortably expand the current drilling program beyond 10,000 metres.
In order to facilitate the expanded drilling, Aldoro is moving a second diamond drilling rig to Narndee, which is expected to arrive on-site in September.
“Proactive approach”
Aldoro chairman Joshua Letcher said: “Given the competitive drilling services landscape and the initial results from our first diamond drill hole at Narndee, NDD0001, the board has taken a proactive approach in moving to secure a second drill rig for the Narndee project and allow it to increase the current program to 10,000 metres.
“The company has also moved to bolster its funding flexibility with a $2.4 million placement which will, subject to results, allow it to increase the drilling program at Narndee beyond 10,000 metres.
“Upon completion of the placement cash reserves will increase to circa $6.2 million with an additional $1.2 million receivable to come following completion of the Aurum Resources spin-off”
Director participation
The Aldoro board has also committed to supporting the placement, subject to shareholder approval at a general meeting.
At this general meeting, approval will also be sought for chairman Joshua Letcher to acquire shares valued at $70,000, non-executive director Troy Flannery for $40,000 in shares and fellow non-executive director Lincoln Ho for placement shares valued at $20,000.
Xcel Capital is acting as lead manager to the placement.
- Ephrems Joseph