Equinox Resources Ltd (ASX:EQN) – which is chasing rare earths in Brazil and iron ore in Western Australia – has completed a $4 million placement which is set to facilitate its exploration in both locations to the tune of $6 million.
The company has already begun work at Brazilian play Rio Campo, with results from reverse circulation and auger drilling at the Rio Negro prospect – 20 kilometres from Brazilian Rare Earths Ltd’s (ASX:BRE) Pele discovery – due in mid-June.
Equinox is also seeking to progress exploration work at its Hamersley Iron Ore Project in Western Australia’s Pilbara region, where the company has secured a mineral resource estimate (MRE) of 343.2 million tonnes at 54.5 percent iron.
Equinox Resources CEO Zac Komur said the oversubscribed placement – which was targeting sophisticated investors – would enable the company to continue its intense program of work in both countries.
“This placement provides us sufficient runway to continue our aggressive drilling programs at our Brazilian rare earth projects and further advancement of our Hamersley Iron Ore Mining Lease,” he said.
“We are currently drilling our Campo Grande Rare Earths prospects in Brazil, which is adjacent to Brazilian Rare Earths, who are currently valued at approximately $690 million, where we have the same potential to uncover high-grade hard rock deposits.
“Additionally, at the rare earth clay deposits at Mata da Corda, we have unprecedented high-grade surface results and are currently preparing to drill.
“We are also working to provide the market with an update on the direct shipping ore mineral resources for our Hamersley Iron Ore Project.”
Equinox was trading at 24.5 cents at 12:01 AEST, a rise of 6.5% since the market opened.