West Australian gold explorer BMG Resources Limited (ASX: BMG) is pleased to announce that it has received firm commitments for a placement of fully paid ordinary shares to institutional and sophisticated investors, raising $4.0 million before costs (Placement).
- Commitments received to raise $4.0 million before costs through a private placement of shares.
- Proceeds from the raising will be used to fund drilling and exploration campaigns at the Company’s 100% owned gold projects in Western Australia.
- BMG’s maiden drill program at the high-grade Abercromby gold project was carried out in December 2020 and delivered multiple thick intercepts of high-grade gold with mineralisation interpreted to be open in all directions.
- Planning for the follow-up drilling campaign at Abercromby is well underway.
A total of 80,000,000 shares will be issued at $0.05 per share, with Argonaut Securities Pty Ltd and Taylor Collison Limited the joint lead managers to the Placement. The Placement of c.$3.0m will be carried out using the Company’s available capacity under ASX Listing Rules 7.1 and 7.1A pursuant to section 708 of the Corporations Act 2021. The balance of the Placement is subject to shareholder approval, to be sought at a General Meeting proposed to be held in August 2021. This will include approval for the placement of $0.2m on the same terms to directors of the Company.
The proceeds from the raising will be used to fund major drilling and exploration programs at the Company’s 100%-owned Western Australian gold projects. This will include a follow-up drilling campaign at the high-grade Abercromby Gold Project, located in the north-eastern Goldfields, and a maiden drill program at the Invincible Project located in central Pilbara.
BMG Managing Director Bruce McCracken said:
“Our maiden drill program at Abercromby returned results displaying width and grade that supports the presence of a significant volume of gold mineralisation.
“We are excited to be progressing to a follow-up drill program at Abercromby that will be designed to further scope the extent of this high-grade gold mineral system.
“Initial work at Invincible has identified targets for potential gold mineralisation, and we pleased to also advance further drill and exploration programs for this gold project.
“We thank our investors for their support in the capital raising and look forward to bringing our 2021 exploration programs into action.”