Strickland Metals Ltd (ASX:STK) has received strong support from institutional and sophisticated investors with firm commitments received for $12 million in a placement described as "transformational".
The placement, which comprises the issue of 160 million shares at $0.075 per share, was heavily supported by existing and new investors including participation by the company’s directors.
Strickland is now fully funded for the planned 23,000 metres Millrose resource drill-out set to begin in January 2022.
The strengthened balance sheet also allows for aggressive regional exploration work on the Dusk til Dawn and Big Daddy gold trends, as well as the recent Iroquois zinc-lead discovery.
“Transformational for Strickland”
Strickland CEO Andrew Bray said: “We are thrilled to have secured the support of new institutional investors in this latest capital raise, and also thank our existing shareholders for their ongoing support.
“This capital raise is in many ways transformational for Strickland as it means we are now fully funded for the resource drill-out at Millrose, which is the cornerstone of our gold strategy."
Placement details
Canaccord Genuity (TSX:CF, LSE:CF) acted as the sole lead manager to the placement and was supported by JP Equity Partners.
The new shares issued under the placement to institutional, professional and sophisticated investors who are not directors or related parties of the company will be issued under ASX Listing Rule 7.1 and will not require shareholder approval. The issue of these shares is expected to occur on November 12, 2021.
In addition, the new shares issued to directors and related parties under the placement will be issued immediately after an extraordinary meeting of shareholders of the company.
Furthermore, the shares issued under the placement are fully-paid ordinary shares and will rank equally with the shares currently on issue.
Millrose Deposit
Millrose Gold Deposit hosts a mineral resource of 6 million tonnes at 1.8 g/t gold for 346,000 ounces of contained gold.
The reported resource forms part of a large mineralised zone that to date has been defined by reverse circulation (RC) and limited diamond drilling over a strike length of at least 2,000 metres.
Gold mineralisation remains open along strike and at depth and the trend is well defined and traceable in the available geophysical datasets and limited RC and aircore drilling.
Notably, the resource consists of a northern and southern zone with the ‘gap’ in between only defined by aircore drilling that was not included in the resource estimation.
"Likelihood of further discoveries"
Bray adds: "The northern portion of our ground – host to the Dusk til Dawn and Big Daddy gold trends – is also emerging as a very exciting area, and we’re growing increasingly optimistic about the likelihood of further gold discoveries out of the current RC program and next year’s planned programs.
“Additionally, this funding gives us the flexibility to continue progressing the exciting, recently discovered zinc-lead mineralisation at Iroquois.
“We’ll continue to conduct programs at Iroquois in parallel with our main gold strategy, with drilling expected to recommence there in the first quarter of next year.”
Forward plan
Strickland is planning aggressive regional exploration work on the Dusk til Dawn and Big Daddy gold trends, as well as the recent Iroquois discovery
The current RC drill program remains ongoing with additional rigs to be added in January 2022
Assays are pending from the Yandal Project:
- 15,000-metre aircore program due within three weeks; and
- 8,500-metre RC program due progressively from late November through to January next year.