Junior explorer Stavely Minerals (ASX:SVY) has launched a $5.5 million fundraising round to fund the next stage of exploration and resource definition drilling at its namesake copper-gold project in western Victoria.
The company is seeking to raise $4 million through the placement of 26.7 million new shares at $0.15 each, and an additional $1.5 million through a stock purchase plan.
The purchase plan will allow eligible shareholders to request up to $30,000 of shares at the same price as the placement, and will be capped at 10 million shares.
Petra Capital will act as sole lead manager and bookrunner for the placement.
Stavely is also in the process of securing $2.5 million in secured debt from sophisticated investors which will be used to complete the acquisition of land adjacent to Thursday’s Gossan project.
Stavely’s executive chairman and chief executive, Chris Cairns, said he was pleased with the early support received from new and existing investors.
“Funds raised through the Placement and Purchase Plan will allow us to continue to invest a significant portion of funds in soil which, in the March quarter, accounted for 87% of our total spend,” he said. declared.
“While Stavely’s share price has been impacted by recent market conditions, a relatively modest capital increase has minimized the dilutive impact of the increase [and] our purchase plan offers all shareholders the opportunity to participate in these prices. »
Largest real estate property
Stavely owns rights to what is believed to be the largest and most strategic property in Victoria’s Stavely volcanic belt.
The company has been focused on making “transformational” mineral discoveries since its $6 million IPO and ASX listing in 2014.
Its “standout” discovery is the shallow, high-grade copper-gold-silver Cayley Lode which hosts an early mineral resource estimate of 9.3 million tonnes grading 1.23% copper, 0.23 grams of copper. gold per tonne and 7.1 g/t silver.
Stavely’s world resources total 28.3 Mt at 0.75% copper, 0.11 g/t gold and 3.5 g/t silver for 210,000 t of copper, 100,000 ounces of gold , 3.2 million ounces of silver and 2,400 t of zinc.