- Gold explorer Breaker Resources (BRB) has frozen its shares until the end of the week as it irons out the details of an upcoming capital raise
- The details of the raise will be announced on Friday, though it’s likely the balance sheet top-up comes as no surprise to shareholders
- At the end of June, Breaker had around $3.68 million in the bank after burning $3.161 million over the June quarter
- This means at those levels of cash burn, the company has just over one financial quarter left of operating cash to play with
- The company’s core exploration focus is its Lake Roe gold project in Western Australia
- Shares in Breaker Resources last traded for 26 cents each last Friday afternoon
Gold explorer Breaker Resources (BRB) has frozen its shares until the end of the week as it irons out the details of an upcoming capital raise.
The details of the capital raise are yet to be announced, but the company requested back-to-back trading halts today to keep shares locked up until Friday.
Of course, news of a fresh capital raise may come as no surprise to shareholders given the company’s latest quarterly financial report.
At the end of June, Breaker had around $3.68 million in the bank after burning $3.161 million over the June quarter. This means at those levels of cash burn, the company has just over one financial quarter left of operating cash to play with.
As such, the upcoming capital raise may be a necessary boost to Breaker’s balance sheet to keep up its exploration work in Western Australia.
In a recent investor presentation, Breaker said its current focus is on a new gold camp at the Lake Roe Project near Kalgoorlie, which is in the early stages of delineation. The area has a one-million-ounce open-pit resource which, according to Breaker, is high-grade by nature with scope to go underground.
The company plans to grow the resource and de-risk future development at the mine.
Already, Breaker has identified three key targets for expansion and has three drilling rigs underway. The company has struck hits of up to 22 grammes per tonne of gold from the first three drill holes at the Carbineer prospect in the project area and has a two-kilometre strike length fo high-grade lodes below and outside the project’s resource.
Breaker shares have recovered nicely from the COVID-19-induced mid-March slump and last traded for 26 cents each. The company has a $60 million market cap.