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- Encounter Resources (ENR) taps investors for $10 million to accelerate exploration activities within the West Arunta region in Western Australia
- The placement to sophisticated, professional and experienced investors will see 40 million shares issued at 25 cents apiece, a 7.4 per cent discount to the last closing price
- The funds will be used to accelerate exploration at its Aileron project in the region, along with progressing copper, rare earth element and lithium exploration at its projects in the Northern Territory
- Encounter Resources is up 3.7 per cent, trading at 28 cents at 11:40 am AEST
Mineral exploration company Encounter Resources (ENR) has tapped investors for $10 million to accelerate exploration activities within the West Arunta region in Western Australia.
The placement to sophisticated, professional and experienced investors will see 40 million shares issued at 25 cents apiece, representing a 7.4 per cent discount to the last closing price of 27 cents, and a 3.4 per cent discount to the ten-day VWAP.
The funds will be used to accelerate exploration at its Aileron project in the West Arunta region. This will include geochemistry work covering new gravity targets, geophysics and reverse circulation and diamond drilling.
Additionally, the cash will be used to progress copper, rare earth element and lithium exploration at Encounter’s projects in the Northern Territory.
“The limited exploration to date in the West Arunta has shown that the region is highly prospective for the formation of iron oxide copper gold (IOCG) and carbonatite-hosted critical mineral deposits under shallow cover,” Encounter Managing Director Will Robinson said.
“This funding will allow us to accelerate activities across the West Arunta which has the hallmarks of a new copper and critical minerals province in Australia.”
Meanwhile, diamond drilling has been progressing at the Caird, Crean and Worsley targets, which were defined in prior geophysical surveys. First results are expected by July 2023.
Encounter Resources was up 3.7 per cent, trading at 28 cents at 11:40 am AEST.
