- Gold explorer, Resources & Energy Group (REZ) has raised $3.3 million for work at its East Menzies Gold Field tenements in WA
- 44 million shares will be issued at 7.5 cents with one attaching option for every four shares held, exercisable at 20 cents
- Funds will be used for the exploration program at the tenements, with a focus on a high-grade discovery at Gigante Grande
- Settlement and allotment of the options will be on November 2
- Shares in Resources & Energy closed 19.3 per cent higher on the market, at 10.5 cents
Resources & Energy Group (REZ) has raised $3.3 million for exploration at its East Menzies Gold Field tenements in Western Australia.
Under the placement, 44 million shares will be issued at 7.5 cents, representing an 80.2 per cent discount to the 15-day volume-weighted average price.
Participants will also receive one attaching option for every four shares held, exercisable at 20 cents each.
The extra cash will be used for exploration works, with a focus on the recent high grade discovery at Gigante Grande. Funds will also be used to continue the development of the Mount Mackenzie gold asset.
Managing Director Richard Poole said the supported placement was off the back of recent results from the project.
"The strong support for the placement reflects the enormous excitement that the recent Gigante Grande results have generated and the growing interest and certainty that there are significant gold resources in the East Menzies Gold Field tenements," he said.
The company is exploring the east of the tenement, whilst on the western side, scoping and pit optimisation studies have begun.
Settlement and allotment of the shares is due on November 2.
Shares in Resources & Energy closed 19.3 per cent higher on the market, at 10.5 cents.