Zenith Minerals (ASX: ZNC) said that strong investor support in the company’s recent $5.1 million capital raising will allow it to accelerate its previously planned exploration activities, with multiple programs now enabled over the coming six months.
All funds have now been now received from the recent $5.1M* capital raising.
Investor support was very strong with the capital raising being significantly oversubscribed.
This funding event now allows Zenith to focus on its exploration activities on its wholly owned core gold projects.
Expanded drill programs planned at both the 100% owned Red Mountain Gold Project in Queensland and at the 100% owned Split Rocks gold project in Western Australia.
The program at Red Mountain will follow-up on highly encouraging results that were returned in Zenith’s recent maiden drilling program including 14m @ 5.5 g/t Au incl 6m @ 12.3 g/t Au from surface. As a result of the capital raise a drill rig has now been made available to Zenith on a full-time basis and pending positive follow-up assay results the rig will work a continuous roster at Red Mountain.
Drilling at the Split Rocks project is testing a series of high-order gold targets extending over 18km of strike throughout the project area. These targets include several, large, high-order geochemical anomalies that have never been or were poorly drill tested. Strong investor support in the capital raise will mean additional funds can now be allocated to testing more targets at Split Rocks.
Further surface geochemical sampling and associated field work has also recently been completed at the Company’s 100% owned Flanagans gold and Develin Creek copper-zinc projects in Queensland. Results are anticipated later this month.
Project Generation Initiatives:
The Company advises that it is currently in ongoing and incomplete negotiations in connection with a number of potential project acquisitions and disposals, including new exploration tenure in New South Wales, possible divestment of its Laramie REE project in Wyoming and renegotiation of its American Lithium JV in the USA. These discussions are ongoing, and no agreement has been entered into, and it is currently unknown when or if agreements will be completed. Additionally, new tenure applications have recently been lodged in Queensland. The Company will provide appropriate disclosure should negotiations and agreements be completed, and new tenure granted.
These actions ensure a fertile and ongoing project generation pipeline. Project generation is a core skill of the Company.
Commenting on the Placement and planned activities, Zenith Managing Director, Mick Clifford said, “We are very pleased that the Company now sufficient funds to evaluate its portfolio in a systematic manner. The funding allows us to accelerate exploration activities to unlock what we believe to be the potential of the Company’s project portfolio.
“The more rapid evaluation of the portfolio will also generate significantly more news for the Company”.