Source: Golden Mile Resources
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  • Golden Mile Resources (G88) successfully taps investors for $1.6 million to fund exploration work at its Yarrambee base metals project in WA
  • The company will place 32 million shares at five cents each to raise the funds — a 10.7 per cent discount to its 15-day volume-weighted average price
  • The funding will go towards ground surveys and drill-testing at the Yarrambee project, as well as other exploration work across G88’s WA assets
  • The company plans to also issue eight million options as part of the placement, exercisable at 10 cents each by September 23, 2023
  • Shares in Golden Mile Resources closed 11.5 per cent lower at 5.4 cents each

Junior explorer Golden Mile Resources (G88) has successfully tapped investors for $1.6 million to fund exploration work at its Yarrambee base metals project in WA.

The company raised the funds by placing some 32 million shares to existing shareholders, and sophisticated and professional investors, at five cents each.

This offer price represents a 10.7 per cent discount to the 15-day volume-weighted average price of G88 shares.

Investors also received one free option for every four shares bought under the placement, exercisable at 10 cents each by September 23, 2023. Golden Mile said eight million options would be issued as part of the capital raise, subject to shareholder approval at the company’s next general meeting.

Golden Mile non-executive director Francesco Cannavo, who is also the company’s largest shareholder, took part in the capital raise by agreeing to buy $100,000 worth of new shares, also subject to shareholder approval.

Managing Director James Merrillees said the capital raise leaves the company well-placed to execute its exploration strategy at the Yarrambee project, where a recent electromagnetic survey highlighted several conductors potentially representing mineralisation.

“This is an exciting development for the company as we look to fast-track exploration at Yarrambee with a ground geophysical crew on site this month in preparation for drilling of our highest priority targets,” Mr Merrillees said.

He said in the lead-up to the drilling work, Golden Mile would kick off more ground surveys later this month to better define the highest-priority drill targets.

“The company’s airborne electromagnetic survey was spectacularly successful in defining more than 48 conductors interpreted to represent potential mineral accumulations and we look forward to drilling the highest priority anomalies shortly after the ground surveys are completed,” Mr Merrillees said.

The company said the fresh funding from the placement would go towards this survey work and initial drill testing at Yarrambee, as well as towards target generation and drilling programs at the Yuinmery and Leonora gold projects.

A portion of the funding will also go towards a beneficiation study at Golden Mile’s Quicksilver nickel-cobalt project, also in WA.

Golden Mile’s flagship Yarrambee project, which covers 816 sqkm, is prospective for nickel, copper, and platinum group elements (PGE), as well as copper and zinc mineralisation.

Shares in Golden Mile Resources broke out of a trading halt this morning and quickly dipped towards the placement price. The company losed 11.5 per cent lower at 5.4 cents each.

G88 by the numbers
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