Greatland Gold has further consolidated its Havieron copper-gold joint venture project in Western Australia with the completion of a fundraising campaign.
Intending to raise a minimum of $US10 million ($13.81 million) via the initiative, investor interest exceeded expectations and Greatland were able to solicit $US16 million through its efforts.
A total of 82 million shares were placed at an issue price of 14.5 pence ($0.018) per share, which represented a 10.5 per cent discount on Greatland’s closing share price on November 17.
Aiming to accelerate Havieron, which the United Kingdom-based miner is exploring alongside Newcrest Mining, Greatland suggested the funds will be used to deliver growth drilling within current deposits while also exploring the wider breccia system of the project.
Greatland also earmarked further exploration in the wider Paterson tenement with the hope of discovering resources similar to Havieron.
The company also intends to use some of the funds to support working capital and other general costs.
It comes after Greatland discovered two Havieron ‘lookalike’ targets at its Canning and Paterson South deposits earlier this month.
The two targets presented characteristics akin to the magnetic and gravity anomaly associated with Havieron.
“These targets, which have never been drilled, are exciting opportunities situated within our expanded holdings in the Paterson district,” Greatland chief executive officer Shaun Day said of the findings.
“Both show strong magnetic and gravity anomalies, with characteristics analogous to the magnetic and gravity signature developed over Havieron.”
Newcrest Mining provided an update on Havieron in October.
Stage one of the pre-feasibility study (PFS) indicated Havieron will deliver an estimated internal rate of return of 16 per cent with a four-year payback period.
This is based on estimated average gold production of 160,000 ounces per annum at an all-in sustaining cost of $US743 per ounce across an initial nine-year mine life.
Greatland and Newcrest hope to bring Havieron into production in 2024.