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Sky Metals (AX:SKY) raises $5.6m for drilling at Doradilla

Mining, The Market Online Deal Room
ASX:SKY      MCAP $19.30M
02 November 2021 14:13 (AEST)

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Junior explorer Sky Metals (SKY) has raised $5.6 million to accelerate drilling work at its Doradilla Tin-Copper Project in north-western New South Wales.

The company will issue 65.9 million new shares to institutional and sophisticated investors at a price of 8.5 cents each, which represents a 13.3 per cent discount compared to Sky Metals’ closing price on October 26 of 9.8 cents per share.

Settlement of the new shares is expected to take place on Thursday, November 4, after which they will rank equally with Sky Metals’ existing shares on issue.

The company said it will use the proceeds for general working capital, and to accelerate an exploration program at its tin, copper and gold projects, particularly Doradilla.

Located roughly 30 kilometres south of Bourke, Doradilla is thought to be prospective for polymetallic tin, copper, silver, bismuth, indium and zinc mineralisation.

According to Sky Metals, previous exploration has focused heavily on the tin content of the DMK Line, which comprises zones of oxide, supergene and primary tin mineralisation. However, strong potential remains for the discovery of additional resources along the DMK-Line, along with additional skarn horizons within the project area.

Shares in Sky Metals are currently down 3.57 per cent to 8.1 cents at 1:57 pm AEDT.

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