Sipa Resources Ltd (ASX:SRI) has raised $1 million in a placement to sophisticated and professional investors, with funds to be used for planned field programs across its portfolio of WA assets.
SRI will issue about 23.1 million fully paid ordinary shares at A$0.045 per share, which represents a 13% discount to Sipa’s 15-day volume weighted average price up to and including November 2, 2022.
These new shares will represent around 10% of the share capital of Sipa, which will have close to 228 million ordinary shares on issue.
The placement will close on November 11 and shares will be issued on Monday, November 14.
“We appreciate the support of existing Sipa shareholders, directors and new parties and these funds enable us to continue our exploration works across our portfolio of West Australian projects into the New Year,” Sipa Resources managing director Pip Darvall said.
Use of funds
Money from the placement will go towards the completion of the drilling and other exploration programs targeting lithium, base metals and gold mineralisation at:
- Barbwire Terrace;
- Skeleton Rocks;
- Murchison;
- Wolfe Basin; and
- Warralong.
It will also be used for general working capital.
About Sipa’s projects
Sipa is focused on the discovery of gold and base metal deposits in Western Australia.
The Paterson North Copper-Gold Project is being progressed in partnership with Rio Tinto Exploration, and the Barbwire Terrace Base Metals Project in joint venture with energy company Buru Energy Ltd (ASX:BRU).
At Wolfe Basin, extensive base metal anomalism and gossans have provided several targets for drill testing along a prospective horizon more than 40 kilometres long.
The Warralong Project is prospective for intrusion-hosted gold, lithium-tin-tantalum and nickel-copper in the north Pilbara region in a ‘look-alike’ structural setting to recent discoveries in the district.
Sipa’s Murchison Project covers major structures and prospective geology in prolific greenstone belts within WA’s northern goldfields.
The Skeleton Rocks project covers outcropping and interpreted greenstone units prospective for gold, lithium and nickel-copper-platinum group element deposits with limited to no previous drilling ever completed in these areas.
In Uganda, Sipa holds a Retention Licence over an intrusive hosted nickel-copper sulphide discovery with significant scale potential.