- Zuleika Gold (ZAG) to raise $3 million through a private placement to fund exploration across its Kalgoorlie-based gold projects in Western Australia
- Following a trading halt, Zuleika revealed it has entered into a subscription agreement with Yandal Investments, a company owned by WA prospector and investor Mark Creasy
- Yandal has agreed to subscribe for 100 million fully paid ordinary shares at three cents each, subject to shareholder approval
- Zuleika says the funds are earmarked for drilling and other exploration work at the company’s namesake project as well as at the Credo, Goongarrie and Menzies gold projects
- Shares have risen 70 per cent to trade at 3.4 cents
Zuleika Gold (ZAG) is set to raise $3 million through a private share placement to help fund exploration programs across multiple exploration targets at its Kalgoorlie gold projects in Western Australia.
Emerging from a trading halt, the company announced it had entered into a subscription agreement with Yandal Investments, a company owned and controlled by successful WA prospector and investor Mark Creasy.
The private placement was set at an issue price of three cents per share, representing a 50 per cent premium to Zuleika’s previous closing share price, which surged in early trading today.
The company said it was excited its Kalgoorlie focused tenement portfolio had attracted Mr Creasy, one of the largest exploration landholders in WA, as a substantial investor.
Subject to shareholder approval, Yandal has agreed to subscribe for 100 million fully paid ordinary shares in Zuleika at three cents each, for a total capital raising of $3 million.
Yandal will also receive free attaching unlisted options expiring on February 28, 2025 comprising 50 million exercisable at five cents each, 30 million at seven cents each and 20 million at 10 cents each.
The placement proceeds will go towards drilling and other exploration work at the company’s namesake project as well as at the Credo, Goongarrie and Menzies gold projects.
Aircore and reverse circulation drilling programs will focus on the advancing Breakaway Dam, Paradigm East and Browns Dam targets on the Zuleika and Credo projects.
Shareholder approval for the placement will be sought at a general meeting to be held no later than the satisfaction date of March 18.
Yandal has agreed to pay the subscription amount within two business days of the satisfaction date.
Shares were trading 70 per cent higher at 3.4 cents at 1:05 pm AEDT.