Warriedar taps investors for up to $19m

West Perth junior Warriedar Resources has announced plans to raise up to $19 million, in order to accelerate development at its Golden Range project in Western Australia's Mid West. 

This follows on from a series of capital raises undertaken by the company last year, for $4 million, $6 million and $9.55 million respectively.

Under the transaction, Amanda Buckingham-led Warriedar said it would issue around 170 million new fully paid ordinary shares at an issue price of 10 cents per share – to raise $17 million.

This price represents a 13 per cent discount to the junior’s closing price of 11.5 cents prior to entering a trading halt on May 23.

Both Bell Potter Securities and Cygnet Capital were appointed joint lead managers and bookrunners to the placement.

In addition to the equity placement, Warriedar said it would also seek to raise up to an additional $2 million by way of a share purchase plan.

Proceeds will be allocated towards the fast-tracking of development at Golden Range’s Ricciardo deposit, which has become the project’s flagship asset.

This will include more than 50,000m worth of new drilling, courtesy of a multi-rig program. 

Ms Buckingham said the company’s focus at Ricciardo was clear.

“To be clear, our overarching strategy remains the same – high-impact drilling to rapidly grow gold-antimony resources at Ricciardo and along the broader ‘Golden Corridor’,” she said.

“To this end, existing funds will remain committed to expanding resources along the ‘Golden Corridor’ and targeting new discoveries along the greater 70km mineralised shear at Golden Range. 

“We currently have two diamond rigs drilling day and night at Windinne Well and Ricciardo, with a third rig planned for June. 

“The focus is on high-grade gold and antimony. Full throttle ahead—let’s give it everything we’ve got.”

As of 12.22pm AWST, Warriedar shares were down 4 per cent to 11 cents.