- Aldoro Resources (ARN) sets its sights on expanding the drilling program at Narndee in WA to beyond 10,000 metres
- The company will conduct a placement of six million shares to fund continuous drilling at the project, with shares issued at $0.40 each to raise $2.4 million
- Following the placement, cash reserves will increase to around $6.2 million, with an additional $1.2 million to come following the completion of the Aurum Resources spin-off
- Aldoro Resources is up 7.37 per cent, trading at 51 cents at 12:30 pm AEST
Aldoro Resources (ARN) has set its sights on expanding its drilling program at Narndee in WA to beyond 10,000 metres.
The company will conduct a placement of six million shares to fund continuous drilling at the project more than 10,000 metres. Shares will be issued at 40 cents each, raising $2.4 million.
The Aldoro board has committed to supporting the placement, subject to receiving the green light from shareholders.
Approval will also be sought for director participation, with Chairman Joshua Letcher aiming to purchase $70,000 worth of shares, Non-Executive Director Lincoln Ho $20,000 in shares, and CEO Troy Flannery to receive $40,0000 worth at $0.40 per share.
The company says following the placement, cash reserves will increase to around $6.2 million, with an additional $1.2 million to come following the completion of the Aurum Resources spin-off.
Xcel Capital will act as lead manager to the placement, earning a fee of 6 per cent, which the company has elected to receive in shares issued at the placement price. Xcel will also be issued 1.75 million unlisted broker options, with a $0.50 strike, expiring in September 2023.
Meanwhile, a second diamond drill hole at the Narndee Igneous Complex has intersected significantly thicker and stronger zones of massive, semi-massive and veined nickel-copper sulphides than previously discovered.
A third hole will now be drilled to track the thicker sulphide accumulation.
Aldoro Resources was up 7.37 per cent, trading at 51 cents at 12:20 pm AEST.