Gold explorer Bulletin Resources has secured $600,000 from a strategic investor to fund exploration and resource expansion at its WA tenements.
The money was received via a share placement of 10.9 million ordinary shares at $0.55 per share, which is a 22 per cent premium of the market price.
The company would use the capital for drilling and expansion at the Lamboo and Golden Crown gold projects in the Kimberley.
Bulletin managing director Martin Phillips was delighted with the outcome of the capital raising.
“We are encouraged by the high level of interest being shown in our project and remain committed to progressing discussions on our financing strategy,” he said.
“We look forward to updating the market on the results from the forthcoming drilling program as part of our resource growth strategy.” Bulletin is the 100 per cent owner and operator at the Lamboo project. With an estimated five-year life, the mine is expected to produce 28,000 ounces of gold per year.
The flagship project, which is near Halls Creek in the Kimberley region of WA, consists of five open pit reserves close to a processing plant.
A 5000m reverse circulation drilling program would start at Nicolson’s Find – the most northern pit at Lamboo.
Drilling would test the down-plunge extension at the north of the deposit which was recently discovered to have 22 grams per tonne of gold.
After testing is completed at Nicolson’s Find, the program will move south and assess the Wagtail and Hyena pits.
The company hopes drilling at the Golden Crown project will raise investor confidence and confirm estimates that the deposit contains 34,000oz of gold.