Great Boulder Resources Ltd (ASX:GBR) will raise $7 million to accelerate work at its flagship Side Well Gold Project in WA.
The company has received binding commitments for a single tranche placement to raise $7.0 million (before costs) at $0.11 per share, with the placement introducing several new, high-quality institutional, sophisticated and professional investors and being well supported by existing significant shareholders.
Cornerstone support was received from high-quality domestic and offshore natural resource funds including Lion Selection Group and Dutch-based Commodity Discovery Fund.
The placement means that in conjunction with existing cash reserves, GBR has a strong unaudited cash balance of c.$9.1 million to start its high impact exploration and drilling campaigns at Side Well, execute its maiden exploration program at Wellington Base Metals Project in the Earaheedy Basin and undertake drilling at the Whiteheads Gold Project.
Notably, there will be strong near-term news flow with assays due from Mulga Bill diamond drilling and aircore drilling testing high priority regional prospects, while a 5,000-metre reverse circulation (RC) program is scheduled to start next week along with completion of a 3D IP survey.
Strong validation
“We are extremely pleased with the overwhelming demand from new institutional and sophisticated investors, and we also thank our existing shareholders for their continued support,” Great Boulder’s managing director Andrew Paterson said.
“This is a strong validation of Great Boulder’s WA gold and base metal asset portfolio, its exploration team and strategy.
"Having announced our first high-grade intersection in May 2021, the Mulga Bill Prospect at Side Well is now over 6 kilometres long and is displaying the hallmarks of a multi-million-ounce project.
"The placement positions the company with a strong balance sheet to accelerate exploration and drilling programs at Side Well to advance the Mulga Bill Prospect towards resource definition, test high-priority geophysical targets and follow-up high priority regional targets defined by recent aircore drilling.
“Investors can look forward to increased exploration activity coupled with strong newsflow 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:
- Exploration and drilling campaigns at the company’s flagship Side Well Gold Project aiming to extend significant high-grade, shallow gold mineralisation identified to date at the +6-kilometre-long Mulga Bill Prospect, drill test high-priority geophysical targets at Mulga Bill generated by EM, 3D IP and gravity surveys, and follow up RC drilling at multiple high priority regional targets;
- Maiden exploration program at the 100%-owned Wellington Base Metals Project along strike from Rumble Resources Ltd (ASX:RTR)’s (Rumble Resources Ltd (ASX:RTR)) recent zinc-lead discovery at the Earaheedy Project;
- Exploration and drilling campaigns at the Whiteheads Gold Project; and
- Corporate costs and general working capital requirements.
Placement details
The placement comprised the issue of 63,636,364 fully paid ordinary shares at an issue price of $0.11 to sophisticated and institutional investors, raising $7.0 million (before costs).
The issue price represents a 12.0% discount to Great Boulder’s last close on March 28, 2022, of $0.125, a 18.3% discount to the 5-day VWAP of $0.135 and a 22.3% discount to the 15-day VWAP of $0.141.
Settlement of the placement shares is expected to happen on Tuesday, April 5, 2022, and placement shares will rank equally with existing fully paid ordinary shares.