Encounter Resources has welcomed Silver Lake Resources as a shareholder as part of plans to raise funds for its Paterson province project in Western Australia.
Silver Lake is taking a 5.3 per cent stake in Encounter and will join Independence Group (IGO), which will maintain a 9.2 per cent stake, as a shareholder.
Upon completion, the capital will accelerate the company’s project generation and exploration activities.
Encounter’s $1.4 million raising will be used to advance the recently identified Lamil copper-gold prospects in the Paterson province.
Specifically, it will assist in accelerating gold and base metal project generation activities and as general working capital.
Encounter managing director Will Robinson welcomed Silver Lake as a new shareholder while also recognising the support of IGO.
“Both companies are highly successful mining companies which supports Encounter’s project generator business model,” he said.
“Collaborating with high quality partners provides multiple opportunities and significant leverage to a pipeline of potential Tier 1 discoveries for our shareholders”.
Encounter also has significant leverage to multiple exploration programs through a series of joint ventures with Newcrest Mining in the Tanami and West Arunta regions in northern Australia.
The company also controls major ground position in the emerging Proterozoic Paterson province, which it is exploring for copper-cobalt deposits with IGO.