- Greenstone Resources (GSR) receives firm commitments for a $3.5 million capital raise to accelerate exploration at its Burbanks project in Western Australia
- The money will be raised through a share placement of over 109 million shares issued at 3.2 cents each
- Drilling at the project’s Main Lode is already under way and the nearby Burbanks North prospect will follow
- Greenstone says the targeted program across the two areas is aimed at extending zones of known high-grade mineralisation to support later phases of infill drilling required for subsequent resource updates.
- GSR shares up 2.7 per cent to 3.8 cents
Greenstone Resources (GSR) has received firm commitments for a capital raising of $3.5 million to help fund exploration at its Burbanks gold project in Western Australia.
The company said 109.37 million shares would be issued under the “oversubscribed” share placement at a price of 3.2 cents each, representing a 7.4 per cent discount to the 15-day volume-weighted average price prior to the stock’s trading halt on Monday, February 14.
Greenstone said the proceeds of the capital raise would expedite exploration across its Burbanks project to guide future development decisions.
The project includes the Burbanks Mining Centre, as well as more than five kilometres of the prospective Burbanks Shear Zone, which the company said was historically the most significant gold producing structure within the Coolgardie Goldfield.
Reverse circulation (RC) and diamond drilling initially targeting extensions to known high-grade structures at the Mining Centre’s Main Lode, where there has been minimal exploration completed below 250 metres, was already under way.
After drilling is completed at Main Lode, Greenstone plans to drill the nearby Burbanks North prospect.
The company said recent reinterpretation of shallow historic drilling undertaken at Burbanks North identified three high-grade plunges near surface, directly analogous to plunges observed within the Mining Centre.
Drilling across the two areas is aimed at extending zones of known high-grade mineralisation to support later phases of infill drilling required for subsequent resource updates.
“The past six months have been a transformational period for the company, including new board, new management and a new strategy. These changes have collectively resulted in two new discoveries at Burbanks South and Burbanks North, serving to validate the new exploration model,” Managing Director & CEO Chris Hansen said.
“Leveraging off these recent high-grade discoveries the company has planned an additional 6,500 metres of drilling to test several other targets at depth. The oversubscribed placement demonstrates the support we continue to generate in the market and the untested
prospectivity of the Burbanks gold project.”
GSR shares were trading 2.7 per cent higher at 3.8 cents at 3:21pm AEDT.