Join our daily newsletter At The Bell to receive exclusive market insights
- Great Southern Mining (GSN) looks to sophisticated and professional investors to raise $2.5 million for an expanded drilling programme at its Duketon project
- A total of 50 million fully paid ordinary shares are set to be issued to investors at five cents apiece with a one-for-four attaching option
- Proceeds are set to go towards a drilling programme at Duketon Gold in Western Australia and target generation at Edinburgh Park in North Queensland
- Shaw and Partners acted as sole lead manager to the placement
- Great Southern Mining shares are down 5.08 per cent at 12:33 pm AEST to trade at 5.6 cents
Great Southern Mining (GSN) is looking to sophisticated and professional investors to raise $2.5 million for an expanded drilling programme at its Duketon project.
The company offered up 50 million fully paid ordinary shares at five cents apiece with one attaching option for every four placement shares an investor subscribes for.
The options carry a five-cent exercise price and expire on September 4, 2022.
Investment firm Shaw and Partners acted as sole lead manager to the placement, which GSN said was “oversubscribed and strongly supported by new and existing shareholders”.
Proceeds from the raise are set to go towards GSN’s drilling program underway at the company’s Duketon Gold Project in Western Australia and continue target generation work at Edinburgh Park in North Queensland.
Great Southern Mining Chief Executive Officer Sean Gregory said the drilling had got off to a good start.
“Drilling at a number of regional targets has been brought forward to rapidly advance exploration activities in the region and to continue to build on this success at Southern Star,” he said.
“This funding will provide the opportunity to rapidly advance each Project along the exploration pipeline, creating strong news flow and discovery potential.”
Great Southern previously held a capital raise in November 2020, when the company issued approximately 39 million fully-paid ordinary shares to raise around $3.1 million also for Edinburgh Park and fellow WA projects.
Great Southern Mining shares are down 5.08 per cent at 12:33 pm AEST to trade at 5.6 cents.
