Queensland-based gold explorer Pacgold (ASX: PGO), has completed a $4.1 million placement to fund the acceleration of exploration at its Alice River Gold Project, located 300km northwest of Cairns, North Queensland.
The funds raised from this placement will facilitate a range of activities, including regional geochemical and geophysical surveys, regional reverse circulation drilling programs, and diamond drilling to further define the resource in the Central zone.
Additionally, the company plans to use the funds for metallurgical studies and camp expansion.
In conjunction with the placement, Pacgold Limited will also offer a share purchase plan aiming to raise up to an additional $1.5 million.
This plan will allow eligible shareholders in Australia and New Zealand to purchase up to $30,000 worth of additional shares without brokerage or commission fees.
Pacgold’s Managing Director, Matthew Boyes, stated, “The support from existing and new shareholders for the placement is a clear demonstration of support for the quality of the Alice River Project. With over 800 drill sites being prepared for the upcoming drill program, we are confident that there will be plenty of good news to report over the coming months.”
The placement saw the issuance of 45,555,556 new shares at 9 cents each, representing a 24.9% discount to the five-day volume-weighted average price.
The placement and share purchase plan funds will be pivotal in advancing the extensive land package at the Alice River Gold Project.