INVICTUS Gold has announced a two-for-one  renounceable rights issue at $0.04 per share, undertaken to raise $2.88 million for exploration at two projects and to fund the acquisition of a third.
The company’s largest shareholder, Impact Minerals, has committed to taking up its entitlement of $1.28 million worth of shares and agreed to underwrite the balance of the  for up to $1.6 million, subject to its own
capital raising.
Turkey is the focus of much of the fundraising. According to a news release from Invictus, the company intended to further explore and drill its Himmetdede South project in the country.
The 7 square kilometre prospect, 50km north of Kayseri, is adjacent to the Himmetdede deposit owned by Turkish company Koza Gold.
It is along strike from another prospect, owned by a private Turkish company, with very high-grade drill results of up to 2m at 225 grams per tonne gold. Similar mineral assemblages occur across about two-thirds of Himmetdede South (about 4sqkm), which Invictus acquired an option to purchase in July. Managing director Dr Mike Jones said that although the analysis of soil samples taken at Himmetdede South in July was not ready to be released, “the results so far as just as encouraging”. He predicted drilling would begin before Christmas.
These promising indications are serving as the impetus for Invictus to purchase more holdings in Turkey. Dr Jones said a ‘grass is greener’ view of overseas holdings played a role.
“It’s incredibly difficult working in Australia, especially Queensland,” he said, attributing the problems largely to onerous regulations. “Landowners’ compensation is increasing our legal costs dramatically.”
He said company considered Turkey attractive due to its significant potential for major gold and copper-gold deposits, especially in the Tethyan Metallogenic Belt, where Himmetdede is. Limited exploration despite a long mining history and a “positive fiscal and legislative regime for mining” were also factors.
Invictus reported that proceeds from the shares would provide general working capital and could be used towards any acquisition in the country.
It stated that it also planned to use the money for further exploration at its Drummond Basin projects in Queensland, including drilling at Scartwater.
The Perth-based company has discovered two porphyry intrusions that contain thick drill intercepts of low-grade gold and silver mineralisation. Detailed studies and follow-up analysis have clearly identified drill targets
for higher-grade mineralisation at depth and along strike, which Invictus intended as a priority for further work.
In the issue, announced on October 2, Invictus’ existing shareholders will be given the opportunity to apply for additional shares.