- Oar Resources (OAR) receives firm commitments to raise $2.3 million through a share placement
- The capital raising will involve the issue of 177 million shares at 1.3 cents each, representing a 7.1 per cent discount to the last closing price
- Funds will go towards exploration work at the Crown platinum group element nickel-copper project in Western Australia
- OAR will also use the money to start drilling at its Douglas Canyon Gold Project in Nevada and work at the Gibraltar project in South Australia
- OAR entered a trading halt on June 9 with shares trading at 1.4 cents apiece. They are trading again 7.14 per cent up at 1.5 cents at 11: 15 am AEST
Oar Resources (OAR) has received firm commitments to raise $2.3 million through a share placement.
The capital raising will involve the issue of 177 million shares at 1.3 cents each, representing a 7.1 per cent discount to the last closing price.
Additionally, brokers who supported the placement will be issued with 40 million shares on the same terms, subject to shareholder approval.
The company has strengthened its balance sheet to be able to "hit the ground running" at its Crown platinum group elements, nickel-copper project in the Julimar district of Western Australia, once final grants for the tenement are received.
In April, OAR announced that Native Title heritage agreements had been signed and lodged with the Department of Mines, Industry Regulation and Safety. The company has since been anticipating final grants to come through "at any time".
Funds from the capital raise will go towards an initial exploration program at Crown. This is expected to include mapping, rock chip sampling and geochemical soil sampling, to be followed by a maiden drilling program.
Chairman Chris Gale said the company was "very excited" to be preparing for the first ground-based activities at Crown.
"The recent geological interpretation carried out by Southern Geoscience identified 20 priority target areas for drilling," he said.
"These targets cover a series of prominent magnetic structures similar to and extend from the Chalice Mining’s Julimar Complex, that have never been drill tested.
"We eagerly await final granting so our site team can commence their field-work to identify key drilling targets."
Further, the company will use the funds from the capital raise to start drilling at its Douglas Canyon Gold Project in the American state of Nevada.
Mr Gale said Nevada state was "elephant country" for world class gold deposits and, following identification of a number of high-grade rock chip samples, the company was "highly encouraged" with what had been observed to date.
Funds will also go towards continuing the regional reconnaissance scale drilling at the Gibraltar Kaolin-Halloysite Project in South Australia.
The next round of results from the Gibraltar Project is expected in the coming weeks. The company expected them earlier however there were delays due to the "complex process" of the assays with three different service providers.
The capital raise isn't subject to shareholder approval and is expected to be complete on June 23.
OAR entered a trading halt on June 9 with shares trading at 1.4 cents apiece. They were trading again 7.14 per cent up at 1.5 cents at 11: 15 am AEST on Wednesday.