- Trek Metals (TKM) enters a trading halt to plan a capital raise
- This follows last week’s announcement of some positive results from a maiden drilling program which targeted the Valley of the Gossans prospect at the Pincunah project in WA
- The program highlighted the potential for a volcanic massive sulphide system which Trek is following up on with exploration later this month and potential follow-up drilling
- Trek hasn’t disclosed how much it plans to raise or how it shall spend the funds but these details should be revealed by October 20
- Company shares last traded at 13.5 cents on October 15
Trek Metals (TKM) has entered a trading halt while it plans an upcoming capital raise.
The company hasn’t disclosed how much it is seeking to raise nor how it will spend the funds. All details should be released once TKM finalises documentation and prepares an announcement which is expected by Wednesday, October 20.
Last week, Trek’s shares rose upon announcing the potential for a significant volcanic massive sulphide (VMS) system at the Valley of the Gossans (VOG) prospect which is part of the Pincunah project in Western Australia.
The potential was highlighted after receiving some encouraging results from a maiden drilling program at the project. The 13-hole reverse circulation program covered an extensive multi-element soil anomaly at VOG extending over a strike length of more than two kilometres.
Trek CEO Derek Marshall said the results pointed to a large-scale VMS copper-zinc base metal system.
“The assays show that we intersected multiple horizons of classic VMS-style mineralisation and alteration, with highly anomalous zinc, copper and silver, plus multiple pathfinder elements that suggest we are right in the middle of a very fertile volcanic environment,” he said.
Following the encouraging observations, Trek will begin a helicopter-borne electromagnetic program later this month at the VOG and the greater Pincunah project area to define significant conductive bodies related to massive sulphide mineralisation. Depending on the outcome, it will conduct follow-up drilling.
Whether or not the upcoming capital raise will support exploration programs isn’t yet clear.
Company shares last traded at 13.5 cents on October 15.