- NTM Gold is set to raise $3 million to speed up work at the Redcliffe Gold Project in Western Australia
- Drilling at Redcliffe will focus on the Hub discovery with reverse circulation drilling to begin in two the three weeks
- A total of 60 million shares will be issued to just two investors at a price of five cents per share
- NTM’s share price is down 10.2 per cent today, with shares trading for 5.3 cents each
NTM Gold is set to raise $3 million to accelerate exploration on the Redcliffe Gold Project in Western Australia.
A total of 60 million shares will be issued to institutional and sophisticated investors at a price of $0.05 per share.
Bell Potter is broker to $1.5 million of the placement to a single institutional investor, while the remaining half will be placed to G Harvey Nominees.
Both investors are existing shareholders of NTM Gold.
The company’s largest shareholder, DGO Gold Limited, has the right to support NTM in addition to the placement so it can maintain interest.
Doing so would contribute $414,500 on the same terms as the placement.
The money raised will be used to help NTM continue drilling at Redcliffe. The focus will be on further reverse circulation (RC) and diamond drilling programs at Hub with two rigs planned to be on site in the next few weeks.
These programs will follow up on the excellent results from the drilling to date where the strike of Hub has recently been extended to 1130 metres and remains open.
“NTM is very pleased to have completed the placement to two existing and strongly supportive shareholders,” Managing Director Andrew Muir said.
“The placement funds, combined with the contribution from DGO, puts NTM in an excellent position to continue drilling the Redcliffe project with two rigs heading to site soon,” he added.
NTM’s share price is down 10.2 per cent today with shares trading for 5.3 cents apiece at 2:57 pm AEDT.