Stavely Minerals has announced a successful capital raising of $8.3 million to fast-track its exploration projects in Victoria and Queensland.
The raising is to be split between a share placement of 20 million company shares at 34 cents a share ($6.8 million) and a share purchase plan capped at 4.4 million shares ($1.5 million).
The funds will primarily be used for the acceleration of drilling programs at Thursday’s Gossan resource, a chalcocite copper prospect in western Victoria, as well as follow-up exploration in Queensland targeting gold mineralisation.
“Over the past 18 months we have been systematically narrowing in on a potential copper-gold porphyry discover at the Thursday’s Gossan prospect and we are now well funded into the next phase of exploration drilling at this very exciting prospect,” said Stavely managing director Chris Cairns, who indicated his belief that the prospect may be undervalued by investors despite a strong round of capital raising for the emerging company.
“While we have convincingly demonstrated that the Thursday’s Gossan prospect is an alkalic (and therefore highly prized) copper-gold porphyry, we still do not believe investors have fully grasped the magnitude of the potential in the multiple targets we have identified within our dominant tenure position in this emerging copper-gold belt.”
Further details and results are expected from Stavely by the end of February.