Join our daily newsletter At The Bell to receive exclusive market insights
- AuTECO (AUT) receives firm commitments for a $9 million capital raise to fund regional exploration at its Pickle Crow project in Canada
- The company will issue 180 million new shares at 5 cents per share to raise the funds — a 12.3 per cent discount to its last closing price
- AUT plans to target new discoveries at Pickle Crow and further expand the high-grade 2.2-million-ounce at 7.8 g/t gold inferred resource in the area
- Executive Chairman Ray Shorrocks said the commitments signalled investors were buying into the company’s short and long-term plans
- Shares in AUT are down 7.08 per cent, trading at 5.3 cents at 11:40 am AEDT
AuTECO Minerals (AUT) has received firm commitments for a $9 million capital raise to accelerate regional exploration efforts at its Pickle Crow gold project in Canada.
The company will issue 180 million new shares at 5 cents per share to raise the funds — a 12.3 per cent discount to its last closing price of 5.7 cents on Monday, January 30, before the company entered a trading halt.
The company said the cash boost would go towards fast-tracking seasonal exploration work at the “world-class” Pickle Crow gold project, targeting new discoveries and further expanding the high-grade 2.2-million-ounce at 7.8 grams per tonne (g/t) gold inferred resource in the area.
AuTECO’s 70-per-cent-owned Pickle Crow gold project is considered to be one of Canada’s highest-grade gold mines — historically producing 1.5 million ounces at 16.1 g/t gold. TSX-listed First Mining owns the remaining 30 per cent interest in the project.
AuTECO Executive Chairman Ray Shorrocks said the commitments from investors signalled the backing of the company’s growth plans.
“The quality of the institutions attracted signals the market’s confidence in our dual strategy of growing the high-grade gold resource in the shadow of the mine’s historic head-frame, while also drilling our 500 square kilometres of exploration claims to test the scale of the system,” Mr Shorrocks said.
“The significant interest in the placement, which was well supported, also reflects the work delivered to date at Pickle Crow, which has demonstrated the potential to significantly grow resources in the short-term and long-term.”
Mr Shorrocks added that the regional exploration potential was “immense”, as the company embarked on unlocking its potential geologically.
Shares in AUT were down 7.08 per cent, trading at 5.3 cents at 11:40 am AEDT.
