Oar Resources Ltd (ASX:OAR) has raised $1.5 million to execute the next phase of exploration at its gold and battery metal projects.
The explorer secured firm commitments for a placement at $0.005 per share, with each investor receiving one free attaching option for every two shares they pick up.
The proceeds will:
- Fund diamond drilling at the Douglas Canyon Gold Project in Nevada;
- Progress exploration at the Crown Nickel-Copper-Platinum Group Element (PGE) project in WA’s Julimar District; and
- Advance the company’s battery minerals and gold-focused business plans.
Executing exploration strategy
Speaking to the raise, Oar Resources managing director Justin Richard said: “This placement enables the company to focus on executing the strategy set out in our recent investor webinar ...
“[This includes] proceeding immediately with our drilling program at the Douglas Canyon Gold Project in Nevada and aerial geophysical mapping at the Crown Nickel-Copper-PGE Project in Western Australia, while providing for the development of divestment and other income-generating options.
“I look forward to reporting the results of these activities throughout the coming months.
“In light of recent market conditions and the company’s immediate plans, this funding option provides an effective path to implementing the next phase in our exploration programs without delay.”
Placement details
Oar Resources will issue 300 million shares and 150 million options under the placement.
Every option investors receive comes with a three-year expiry date and can be exercised at $0.01.
In addition, brokers who supported the placement will be issued with 60 million options on the same terms as the placement options, subject to shareholder approval.
The funds raised will be used to advance exploration programs at OAR’s core projects.
This includes recommencing drilling this month at the Douglas Canyon Gold Project in Nevada, as well as extending the company’s exploration mapping program into its expanded project tenure at Douglas Canyon along an interpreted strike of more than 2.5 kilometres.
Funds have also been allocated for ongoing fieldwork at the Crown Nickel-Copper-PGE Project in the Julimar District.
This will include an airborne geophysical survey over priority target areas in the project’s Eastern Domain, in order to identify drill targets for its maiden drilling program at Crown.