Westar Resources Ltd has filled a placement to raise A$850,000 at A$0.120 per share following strong support from new and existing professional and sophisticated investors.
The issue price represents a 14.3% discount to Westar’s last close on November 8, 2021, of $0.140 and a 20.2% discount to the 10-day volume-weighted average price of A$0.1504.
Green light for exploration
This injection of capital and existing cash reserves will fund the company’s exploration activities across 7 kilometres of prospective strike at Gidgee North, where successful geochemical and geophysical surveys have been undertaken revealing copper, zinc, silver and gold deposits.
“The placement positions the company with a strong cash balance to progress its exploration program at the recently consolidated Gidgee North project that hosts both gold and volcanogenic massive sulphide (VMS) base-metal targets with historic copper and zinc drill intercepts and greenfields discovery potential,” Westar managing director Karl Jupp said.
“We are pleased with the strong demand from both new and existing sophisticated investors."
Fast-tracking work
Westar plans to fast track exploration activities across Gidgee North following the survey work.
Historical drilling has revealed copper mineralisation at the end-of-hole at the recent earn-in Geoff Well’s Vela prospect:
- •8 metres at 1.12% copper from 48 metres, including 4 metres at 1.65%.
Settlement of the 7,060,621 placement shares will occur on or about Wednesday, November 24, 2021.