Golden State Mining (ASX:GSM) looks to bank $3.2M for gold and lithium drilling

• Golden State Mining (GSM) is set to bank $3.2 million from its investors to fund follow-up gold and lithium drilling pursuits
• All up, 25.6 million shares were offered up to sophisticated and professional investors via the placement, at 12.5 cents each
• The explorer said it plans to use the funds for upcoming follow-up gold and lithium drills at its Yule South project in Western Australia
• Golden State’s largest shareholder, Perth Select Seafoods, has committed to one million shares in the placement
• Golden State Mining closed today’s session up 3.57 per cent trading at 14.5 cents per share

Golden State Mining (GSM) is set to bank $3.2 million from its investors to fund follow-up gold and lithium drilling pursuits.

The company offered up to 25.6 million new GSM shares to sophisticated and professional investors via the placement at 12.5 cents per share and was lead by Euroz Hartleys.

Funds raised from the placement, alongside the company’s cash reserves, are set to go towards follow-up gold and lithium drilling programmes at targets at its Yule South project in Western Australia, which are expected to commence in March and May respectively.

Golden State also indicated funds would be used to finance the company’s ongoing working capital requirements and general administrative overheads.

This first portion of shares, totalling 13,726,892, is expected to settle on Friday March 5 and will not be subject to shareholder approval. The remaining 11,873,108 however will require said approval and is expected to settle on April 9 2021.

Golden State’s largest shareholder, Perth Select Seafoods, has committed to one million shares in the placement.

“Golden State welcomes the significant support demonstrated by the oversubscribed Placement by existing shareholders and new investors of the company,” Golden State’s Managing Director Mike Moore said.

“2021 will see significant exploration activity with multiple drilling programs and we look forward to keeping shareholders up to date with our activity,” he concluded.

Golden State Mining closed today’s session up 3.57 per cent trading at 14.5 cents per share.