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Golden State Mining (ASX:GSM) - Managing Director, Michael Moore
Managing Director, Michael Moore
Source: HotCopper
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  • Golden State Mining (GSM) is looking to raise $2.2 million to fund exploration and drilling at its Yule Project
  • Approximately 17.6 million fully paid ordinary shares will be issued to sophisticated and professional investors at price of $0.125 per share
  • Money raised from the placement will primarily be used for a 10,000-metre maiden aircore drilling program at the Yule Project
  • Some money will also go towards ongoing exploration and maiden drilling campaigns at the Sholl Shear Zone and Balla Yule Project
  • Golden State is up 5.71 per cent on the market and shares are trading for 18.5 cents each just before market close

Golden State Mining (GSM) is looking to raise $2.2 million to fund exploration and drilling at its Yule Project.

Approximately 17.6 million fully paid ordinary shares will be issued to sophisticated and professional investors at a price of $0.125 per share.

The placement will be undertaken in two phases, with phase one issuing 9.15 million shares on May 29.

The issue of the remaining 8.45 million shares is subject to shareholder approval, which will be sought after at the general meeting scheduled for June.

“Golden State welcomes the significant support demonstrated for the placement by existing shareholders and new investors of the company,” Managing Director Mike Moore commented.

“This is a very exciting time for the company as we now work towards the fully approved and expanded inaugural gold drilling program which is planned to be in excess of 10,000 metres,” he added.

Money raised from the placement will be used for a 10,000-metre maiden aircore (AC) drilling program at the Yule South Gold Project, and additional aircore (AC) and reverse circulation (RC) drilling at Yule South. However, this will only happen if results from the 10,000-metre program yields favourable results.

Some money will also go towards ongoing exploration and maiden drilling campaigns at the Sholl Shear Zone and Balla Yule Project. Meanwhile, the remaining funds will go towards costs associated with the placement and general working capital.

The aim of AC drilling at Yule South is to test the priority gold targets at a greater drill density.

A total of five targets will be tested, ranging from aeromagnetic anomalies to mafic and ultramafic sequences.

Golden State is up 5.71 per cent on the market and shares are trading for 18.5 cents each at 3:54 pm AEST.

GSM by the numbers
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