- Saturn Metals (STN) will raise nearly $1.9 million to accelerate exploration its Apollo Hill Gold Project in Western Australia
- The company received a firm commitment for a private placement from Dundee Corporation
- Over 3.7 million shares will be issued at 50 cents each and Dundee has subscribed for nearly 1.9 million options at an exercise price of 70 cents
- Should the options be exercised, Saturn will pocket an extra $1.3 million
- The funds will allow Saturn to conduct resource definition drilling to upgrade the Mineral Resource at Apollo Hill
- Saturn Metals closed 17.7 per cent in the green, with shares going for 60 cents each
Saturn Metals (STN) has received a firm commitment from Dundee Corporation to raise $1,892,500 to accelerate exploration at its Apollo Hill Gold Project in Western Australia.
Dundee Corporation is an organisation within the mining and resources sector and once the placement is completed, Dundee will become a 9.99 per cent strategic shareholder.
The placement will be made by issuing 3,785,000 shares at 50 cents per share. Dundee has also subscribed for 1,892,500 options with an exercise price of 70 cents for a period of two years from the issue date. These options are subject to shareholder approval at a general meeting which is planned for early August.
When the options are exercised, Saturn will receive an extra $1.3 million.
“This successful raising has put the company in a strong position as we seek to test our exciting new concepts and follow up on some of the best intersections ever seen across the Apollo Hill project,” Managing Director Ian Bamborough said.
Apollo Hill is located approximately 60 kilometres southeast of Leonora in the Goldfields region of Western Australia. Saturn is hoping to develop the project into a large tonnage, simple metallurgy, low-strip open pit mining operation.
Funds will initially go towards drilling at the Apollo Hill hanging-wall zones where recent intersections have now outlined a 600 metre-wide mineralised corridor. Drilling is in progress, with assays pending for several holes.
The company is currently stepping out along strike where it sees significant potential. A second reverse circulation rig is expected to arrive on site within the next few weeks.
Saturn hopes to upgrade Apollo Hill’s Mineral Resource which currently stands at 24.5 million tonnes at 1.0g/t gold for 781,000 ounces of gold.
“The placement has strengthened our balance sheet, provided us with a new cornerstone investor, and ensured we have the ability to accelerate our work. I look forward to the results flow and a prosperous future for Saturn Metals,” Ian concluded.
Saturn Metals closed 17.7 per cent in the green, with shares going for 60 cents each.