Junior explorer WIN Metals has announced a 7,000-metre reverse circulation drilling program will begin at its recently acquired Butchers Creek gold project in the Kimberley.
Junior explorer WIN Metals will undertake a reverse circulation drilling program at its recently acquired Butchers Creek gold project in the Kimberley.
On August 28, WIN informed the market it had entered into a tenement sale agreement with Meteoric Resources regarding the project, with the transaction package – with a value of up to $5 million – comprised of several staged cash and share payments.
Meteoric, which stated Butchers Creek was a non-core project, said its primary focus was enhancing development at its Caldeira clay rare earth elements project in Brazil.
Aside from confirming West Kalgoorlie-based Raglan Drilling as contractor for the program, which will begin imminently, Steve Norregaard-led WIN also told the market it was planning a $3.6 million share placement. Proceeds will be put toward acquisition, evaluation and exploration costs at Butchers Creek.
This capital raise is in line with one of the acquisition conditions outlined during the August 28 update, whereby WIN committed to generate around $3 million within 75 days.
Under the conditional placement, WIN said it would issue 144 million shares at an issue price of 2.5 cents, which represents a 19.4 per cent discount to the company’s last trading price of 3.1 cents prior to entering its trading halt.
Coupled by this, each participant will receive one free attaching option per each two shares issued within the placement.
Both Euroz Hartleys and Shaw and Partners were appointed joint lead partners for the capital raise.
Within its drilling contract with Raglan, Perth-based WIN said it would issue 6 million of its shares to the company as ‘partial consideration’ for their services, at a price of 2.5 cents per share.
