- Junior explorer Woomera Mining (WML) has called a trading halt today as it gets ready to launch a fresh capital raising plan
- At this stage, the trading halt will lift on Monday, April 12, unless Woomera announces the details of the raise before then
- The company owns several mining projects across Australia, though it currently has a strong exploration focus on its WA Mt Venn gold project
- The company has outlined its exploration plan and work schedule for Mt Venn through to the end of 2022, so it’s likely the upcoming capital raise will be used to fund this work
- Looking at the company’s financial position, Woomera had just over $900,000 in available funding at the end of December 2020 after using $543,000 in operating activities over the December quarter
- Shares in Woomera Mining last closed on Wednesday, April 7, at 1.9 cents each
Junior explorer Woomera Mining (WML) has called a trading halt today as it gets ready to launch a fresh capital raising plan.
The company has not yet revealed the details of the plan, so at this stage, it’s still uncertain exactly how much Woomera plans to raise and for what it will use the influx of cash.
Shares in Woomera will remain in a trading halt until Monday, April 12, unless the company reveals the details of the raise before then.
Woomera owns a string of mining projects across Western Australian and South Australia, prospective for gold, nickel, copper, cobalt, platinum group elements and more.
One of the company’s current core focusses is its Mt Venn gold project in WA’s Eastern Goldfields region. Woomera owns 80 per cent of the project in a joint venture with fellow ASX-listed Cazaly Resources (CAZ).
In an investor presentation from March, Woomera highlighted its exploration timeline and upcoming work plans at the Mt Venn project through to the end of the 2022 financial year.
These works include heritage, mapping, and ground electromagnetic work at the Mt Cumming complex within the Mt Venn project area to be completed by the end of June. This will go hand-in-hand with a first-phase reverse circulation (RC) and aircore drilling program at the Three Bears prospect.
Diamond hole and RC drilling will then follow at Mt Cumming in the first quarter of 2022, with a second-phase drilling program at Three Bears to come soon after.
Taking a look at Woomera’s financial position, the company had just over $900,000 in available funding at the end of December 2020 after using $543,000 in operating activities over the December quarter.
This meant at current spending levels, the company had fewer than two financial quarters of funding remaining — certainly not an unusual position for an active explorer to be in, but it could explain the need for the upcoming capital raise.
Further details will be announced by Woomera after the weekend.
Shares in Woomera Mining last closed on Wednesday, April 7, at 1.9 cents each. The company has a $6.14 million market cap.