Arika Resources Ltd – the company formerly known as Metalicity – is set to complete a Placement worth $3.2 million to increase its exploration work at the high-grade Yundamindra gold project in Western Australia.
With previous drilling work at the Pennyweight Point target picking up a suite of intercepts grading around and above 3 gram per tonne, Arika wants to accelerate drilling at the project.
This will also focus on a shallow gold system which links four prospects together for 2,500 metres along strike, with a view to expanding and testing this – with the Landed at Last and Bonaparte prospects to receive particular attention.
In terms of the capital raise, Arika has received commitments from sophisticated investors for the $3.2M Placement, including a $0.2M commitment from company directors.
The cash will go mostly towards Yundamindra – which is located 65 kilometres southeast of Leonora – as well as to additional working capital.
Arika managing director Justin Barton said support for the Placement reflected investors’ belief in the quality of the project and its exploration potential.
“The raising places the Company in a great position to enable us to immediately accelerate drilling at the rapidly emerging Yundamindra Gold Project, following the outstanding recent results returned from the Company’s maiden drilling programs, which included the Company’s longest and best intercept to date of 30m @ 3.86 g/t Au,” he said.
“Planning and commencement of the next phase of drilling will begin following interpretation of the assays from the remaining 22 holes still pending from our recent drilling program.
“The next phase of drilling will focus on expanding on known mineralisation at Pennyweight Point and testing the 2.5km of potential strike at the greater Landed at Last prospect and on targeting new discoveries.”
At 10:30 AEDT, Arika was trading at 2.6 cents – a fall of 10.34% since the market opened.
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