Falcon Metals raises $30M in placement

• Falcon Metals secures firm commitments to raise $30 million through an institutional share placement.
• Shares were priced at $0.60 each, representing an 11.8% discount to the last traded price of $0.68 on Aug. 25.
• Proceeds will fund expanded drilling at the Blue Moon Gold Project and a maiden drilling campaign at Errabiddy.

Falcon Metals (ASX:FAL) has secured firm commitments to raise $30 million through a share placement to fund exploration programmes in Victoria and Western Australia.

The $0.60 issue price compares with the company’s previous closing price of $0.68 on Aug. 25.

"The strong level of demand for the placement reflects growing recognition of the opportunities emerging across Falcon's exploration portfolio," said Falcon Metals Managing Director Tim Markwell.

The offer involves issuing 50 million new shares, with funds allocated to continuous diamond drilling at Blue Moon and maiden reverse-circulation drilling at Errabiddy scheduled for September.

Following the announcement, the Falcon Metals share price was down at $0.61.

The company stated that the fresh capital will strengthen its balance sheet and enable aggressive advancement of its Victorian gold assets.

Falcon Metals holds exploration ground immediately north of the historical 22-million-ounce Bendigo Goldfield alongside its Western Australian projects.