- Small-cap miner Argent Minerals (ARD) has successfully tapped investors for $2.2 million to take on extensive drilling programs across its projects
- The company raised the cash by placing 40 million shares at 5.5 cents each
- For every two shares bought, investors were given one free option exercisable at five cents each by late-October 2021
- The funds will go towards six major drilling programs across Argent's Kempfield, West Wyalong, Loch Lily, and Pine Ride Gold Mine tenements
- Shares in Argent are trading over seven per cent lower this afternoon and worth 5.1 cents each
Small-cap miner Argent Minerals (ARD) has successfully tapped investors for $2.2 million to take on some extensive drilling programs across its project portfolio.
To raise the funds, Argent placed 40 million shares at 5.5 cents a pop to sophisticated and professional investors. Buyers were also given one free option for every two shares bought, exercisable at five cents each by October 29, 2021.
The company said the funds will allow it to take on six drilling campaigns over the next 12 months.
Argent Managing Director and CEO George Karageorge said the company is "overwhelmed" with the result of the placement.
"This will allow Argent to fast track the company’s planned drilling over most project areas and now undertake a major drilling program to upgrade the Kempfield polymetallic resource," George said.
The drilling programs will be focussed on exploring the company's Kempfield, West Wyalong, Loch Lily, and Pine Ride Gold Mine tenements.
Argent said it made the call to raise capital so it can speed up drilling programs and take advantage of the recent surges in gold and silver spot prices.
The company has laid out some clear drilling goals, which include 3000 metres of reverse circulation (RC) drilling for the first stage of the Kempfield program and 2500 metres of RC and diamond drilling at the second stage. Stage two of the Kempfield program is slated to begin in early 2021.
Over 5000 metres of drilling is planned for Pine Ridge, with 2200 metres to be drilled in October 2020 and a further 3000 metres over March and April 2021.
At the same time, Argent is planning 4500 metres of drilling at West Wyalong, made up of 3000 metres of RC holes and 1500 metres of diamond holes.
At Loch Lily, the company is planning 2000 metres of drilling split evenly between RC and diamond.
Argent shares are trading 7.27 per cent lower this afternoon on a tough day for the wider materials sector, with shares worth 5.1 cents each.