LINQ Minerals (ASX:LNQ) has seen its share price dip on Tuesday on the back of an oversubscribed placement that ended up raising $15 million; however, at a placement price of 55cps, what’s more noteworthy is that the explorer’s shares are still hovering north of 60cps out the gate.
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The Australian company’s latest fundraising exercise sees tech director John Holliday providing $100,000 of cash out-of-pocket in what may well be a show of conviction from inside the company itself; overall, funds will be used to ramp up drilling at the Gilmore copper-gold project in New South Wales.
That project was recently provided to geotechs, a drill intercept coming in at over one hundred metres wide and grading at 1g/t from a historical asset last active in 1996 when gold prices were under $500/oz.
The reason behind strong Aussie market interest, then, in LinQ Minerals, is fairly easy to calculate. (In fact, since The Market Link interviewed LNQ’s executive chairman Clive Donner here, the share price has jumped over +100%).
““We are delighted to announce this strategic placement, which was strongly supported by new institutional investors. The placement provides a strong validation of the Company’s strategy and will enable us to accelerate our exploration activities at the Gilmore Gold-Copper Project,” Donner said on Tuesday.
Cashed up to the tune of $20M, investors will now be keenly waiting for further drill data ahead of a looming resource upgrade at Gilmore – which, no small point, already has a resource for a potential 3Moz of gold, and that’s not to speak of exposure to copper mineralisation, either.
With prices just north of 60cps, investors will no doubt be peering at the attaching options to the placement, too, with an exercise price from issue of 78c.
LNQ last traded at 61.5cps.
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