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- Strickland Metals (STK) has received firm commitments to raise $12 million through a placement to institutional and sophisticated investors
- The placement received strong support and will involve the issue of 160 million shares at 7.5 cents per share
- Strickland plans to use the funds for resource drilling at the Millrose gold project in WA which is expected to begin in the new year
- Company shares are down 6.9 per cent to trade at 8.1 cents
Strickland Metals (STK) has received firm commitments to raise $12 million through a placement.
The company will issue 160 million shares to institutional and sophisticated investors at 7.5 cents per share.
Positively, the demand for the placement exceeded Strickland’s expectations.
“We are thrilled to have secured the support of new institutional investors in this latest capital raise, and also thank our existing shareholders for their ongoing support,” CEO Andrew Bray said.
“This capital raise is in many ways transformational for Strickland as it means we are now fully funded for the resource drill out at Millrose, which is the cornerstone of our gold strategy.”
Strickland Metals will use the money to conduct 23,000 metres of resource drilling at the Millrose project, which is located in Western Australia.
Millrose has a mineral resource of six million tonnes at 1.8 grams per tonne (g/t) of gold for 346,000 ounces of contained gold, which forms part of a large mineralised zone that has been defined by reverse circulation and limited diamond drilling over at least 2000 metres of strike. The gold mineralisation remains open along strike and at depth
Drilling is expected to begin in January next year and will result in a mineral resource upgrade. Following this, Strickland will consider beginning a scoping study for the development of the resource.
The strengthened balance sheet also allows for regional exploration work on the Dusk til
Dawn and Big Daddy gold trends, as well as the recent Iroquois zinc-lead discovery.
Company shares were down 6.9 per cent to trade at 8.1 cents at 2:10 pm AEDT.
