- Strickland Metals (STK) to raise up to $7 million to advance exploration at the Millrose and Earaheedy projects in WA
- The placement is raising $4 million to through the issue of 80 million shares to investors at 5 cents
- Strickland will then launch a $3 million share purchase plan, enabling eligible shareholders to subscribe for up to $30,000 worth of new shares
- Specifically, STK is using the money to continue drilling at the Millrose project, which has yielded positive results, and will target zinc-lead mineralisation at Earaheedy
- Company shares are down 5.26 per cent to trade at 5.4 cents at 1:19 pm AEST
Strickland Metals (STK) has launched a placement to raise $4 million to advance exploration work at the Yandal belt in Western Australia.
The company will issue 80 million shares to institutional and sophisticated investors at 5 cents each, representing a 15 per cent discount to the 15-day volume-weighted average price and a 12 per cent discount to the last closing price.
Company directors have shown their support for the placement by subscribing for a combined $165,000 worth of shares, subject to shareholder approval.
In addition to the placement, Strickland will undertake a non-underwritten share purchase plan (SPP) to raise up to a further $3 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of new shares at the same price as the placement. If the SPP raises over $3 million, the company can accept applications at its discretion.
The SPP will be open from August 18 until September 9 and new shares will be issued on September 16.
“The placement and SPP we’ve announced today allows us to maintain our momentum at Millrose with a focus on initially drilling the full extent of the 13-kilometre gold structure,” CEO Andrew Bray said.
Strickland has been focused on drilling at the Millrose gold project which has so far yielded results that the company said exceeded its expectations.
The capital raise will also allow the company to temporarily move the third drill rig to the Earaheedy project, which lies 70 kilometres north of Millrose, to conduct exploration. This work will target further zinc-lead mineralisation at Iroquois as well as at the recently announced Malecite prospect.
STK shares were down 5.26 per cent to trade at 5.4 cents at 1:19 pm AEST.