- Auteco Minerals (AUT) has received firm commitments for a $5.1 million placement to begin exploration at the Pickle Crow Gold Project in Canada
- More than 145 million shares will be issued at a price of 3.5 cents each
- Auteco will use the money to begin its maiden drilling campaign at Pickle Crow and general working capital
- A 5000 metre drilling program will be undertaken to test high-grade gold targets that were identified during previous exploration programs
- The company is also planning to complete a JORC compliant resource in the second quarter of 2020
- Auteco has ended the day 15 per cent in the green with shares trading for 4.6 cents each
Auteco Minerals (AUT) has received firm commitments for a $5.1 million placement to begin exploration at the Pickle Crow Gold Project.
Approximately 145,714,286 shares will be issued at a price of 3.5 cents per share.
This price represents a 2.4 per cent premium to Auteco’s 10-day volume weighted average price (VWAP).
Company Directors are planning to subscribe for $225,000, however, this is subject to shareholder approval which will be sought after at the Extraordinary General Meeting in June.
This placement will be conducted in two phases with phase one issuing 139,285,714 shares on or around May 6.
The remaining shares will be for the Directors.
“We are very pleased to announce the successful commitments for a very well supported placement to raise $1.5 million,” Executive Chairman Ray Shorrocks commented.
“The strong interest shown by leading institutional investors is a huge endorsement of the Pickle Crow Gold Project and the current gold market environment,” he said.
Auteco will use the money to begin its maiden drilling campaign at Pickle Crow and general working capital.
The Pickle Crow Gold Project is located in Ontario, Canada and is one of the country’s highest-grade historical gold mine.
The mine ran from 1935 to 1966 and produced 1.5 million ounces of gold at an average grade of 16g/t gold. Very little modern exploration has been completed since then.
With this money, Auteco will complete a 5000 metre drilling program to test high-grade gold targets that were identified during previous exploration programs.
The company is also planning to complete a JORC compliant resource in Q2 CY20.
“The proceeds raised enable us to begin our maiden drilling program at Pickle Crow, where we will initially be focusing on high-grade gold targets,” Ray said.
“In addition, we are expecting to release a JORC 2012 compliant resource during this calendar quarter,” he added.
Auteco has ended the day 15 per cent in the green with shares trading for 4.6 cents each in a $47.65 million market cap.