Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Gateway Mining has successfully completed a $3.46 million capital raise
  • Funds will be used to support a new major phase of drilling and exploration at its Gidgee Gold project
  • A total of 230,966,664 shares were issued and priced at $0.015 each

Gateway Mining has successfully completed a $3.46 million capital raise to support a new major phase of drilling and exploration at its Gidgee Gold project.

The Gidgee Gold project covers a total area of 300 square kilometres over the southern extension of the Gum Creek Greenstone Belt.

This area is highly prospective for both lode style gold deposits and volcanogenic massive sulphide (VHMS) ore deposits.

Historically, the Gidgee region has produced around 1.5 million ounces of gold and the discovery of copper mineralisation has highlighted the prospectivity of the project area to host significant VHMS deposits as well as gold.

To raise the $3.46 million, a total of 230,966,664 shares were issued to institutional, sophisticated and professional investors priced at $0.015 each.

The placement was undertaken in two phases with phase one issuing 210,966,664 shares and phase two issuing the remaining 20 million shares. These were subject to receiving shareholder approval.

Issuing of the phase one shares is expected to occur on Friday August 30, and phase two will be issued immediately after the general meeting of shareholders.

The funds raised will be used to support the next phase of exploration at Gateway’s Gidgee project with the aim to finalise and expand its maiden mineral resource estimates.

Key activities will include drilling to test strike and depth extensions of the Whistler and Montague gold deposits, and drilling to test the recently identified southern extensions of the Whistler deposit.

Funds will also be used for corporate and general working capital purposes. The company hopes this will help establish Gidgee as a new and substantial Australian gold development project.

“Planned drilling programs will commence immediately and will begin testing the significant number of outstanding targets we have generated, including immediate extensions of the Whistler and Montague deposits,” Gateway Managing Director, Peter Langworthy said.

Shares in Gateway Mining are now trading for 1.9 cents apiece in an $18.58 million market cap.

GML by the numbers
More From The Market Herald
Champion Iron (ASX:CIA) - CEO, David Cataford

" Champion Iron (ASX:CIA) achieves record net income in June quarter

Champion Iron (ASX:CIA) has achieved a record net income of C$75.6 million (roughly A$78.9 million) during…
Champion Iron (ASX:CIA) - CEO, David Cataford

" Champion Iron (ASX:CIA) to return to full production at Bloom Lake

As of April 15, mining services have been deemed a "priority service", so Champion can ramp…
Champion Iron (ASX:CIA) - CEO, David Cataford

" Champion Iron (ASX:CIA) winds down mining at Bloom Lake

Mining company Champion Iron (CIA) will decrease operations at its Bloom Lake mine in Canada, per a government directive.

" A recommissioned mine pushes Champion Iron over a significant milestone

Canadian based mining explorer Champion Iron reached its ten-millionth shipped tonne of iron ore today, thanks…