- Exploration company Blaze International (BLZ) has entered a trading halt ahead of a capital raise
- No details have been released about the capital raise venutre at this stage
- However, Blaze recently announced it was buying the Mt Magnet Gold Project from private explorer Eastern Goldfields Exploration (EGE)
- As part of the deal, the company paid $20,000 upfront to EGE, with at least $100,000 to be spent on exploration over nine months
- An additional $1 million payment and 7.5 million shares need to be issued for Blaze to acquire a 100 per cent interest in the project
- Shares in Blaze last traded for three cents per share, on July 9, 2020
Junior exploration company Blaze International (BLZ) has entered a trading halt today, ahead of a capital raise.
Recently, Blaze wrote to the ASX to request a trading halt. It will be lifted once an announcement is made setting out the details of the capital raise, or on July 14, whichever occurs first.
No details have been released about the capital raise venutre at this stage. However, Blaze recently announced it was buying the Mt Magnet Gold Project from private explorer Eastern Goldfields Exploration (EGE).
The project, which is located in WA, consists of three exploration licences located just south of Mt Magent in Meekathara.
Previous work by EGE highlighted a number of drill-ready targets for prospective gold mineralisation, along with a number of gold-in-soil anomalies.
Under the terms of the deal announced on July 2, Blaze is required to pay a $20,000 option fee and spend a minimum of $100,000 on exploration within nine months.
Following this, the company can then acquire 100 per cent interest in the project, if it pays an additional $1 million and issues 7.5 million shares to the vendor.
Blaze will also have to pay two per cent net smelter return on any metals produced at Mt Magnet.
Before today’s trading halt was implemented, shares in Blaze were trading for three cents each on July 9.