Galileo Mining Ltd (ASX:GAL) has raised $20.4 million in a placement to sophisticated and institutional investors with funds to be used to accelerate and expand diamond and reverse circulation (RC) drill programs at the Callisto palladium-nickel discovery within the Norseman Project.
The oversubscribed placement saw 17 million shares issued at $1.20 per share, with confidence in the company illustrated by cornerstone investments coming from major shareholders Mark Creasy and IGO Ltd.
Aggressive exploration planned
Galileo managing director Brad Underwood said: “We are delighted with the strong market support for our placement which puts us in an excellent position to expand the drilling programs at our recent Callisto palladium-nickel discovery.
"The high level of interest has allowed us to complete the $20.4 million placement with $8.7 million of the funds coming from our major shareholders, Mark Creasy and IGO.
“The placement will increase our total cash to approximately $26.5 million and allow us to aggressively explore this significant new palladium province within our Norseman Project area.
"With over five kilometres of strike length at the Callisto discovery, and highly prospective targets at the Jimberlana and Mission Sill prospects, the potential for additional mineralisation is very high.
“We are currently completing our second RC drill campaign at Callisto with a geological update to be provided to the market on the completion of the program. In addition, we are waiting for the assay results from the first four drill holes of the present drill program which are expected to be returned from the laboratory shortly.
“The third RC drill program is scheduled to begin at the end of July with diamond drilling planned to commence in August. We look forward to updating the market with results from this exciting new West Australian discovery.”
Use of funds
Funds raised will primarily be used for:
- accelerated diamond and RC drill programs at the Callisto palladium nickel discovery and target testing along the five-kilometre prospective strike length;
- Drilling and exploration of highly prospective Mission Sill and Jimberlana palladium-nickel prospects; and
- general working capital purposes.