Recharge Metals (ASX:REC) announced the acquisition of the Sunset Well Gold Project.
Located in the highly prospective Leonora district, the project provides the company with an established resource base and significant exploration upside in a region renowned for high-grade deposits.
The acquisition is underpinned by a robust capital injection totalling almost $6 million.
The funding was secured through a $4 million share placement to sophisticated and professional investors, alongside a $2 million rights issue to existing shareholders.
The rights issue, offered on a 4-for-5 basis, was met with strong demand, resulting in $1.8 million in over-subscriptions.
The funds are earmarked to accelerate exploration activities at Sunset Well and the company’s existing portfolio.
Sunset Well is anchored by the Prospero Deposit, which currently hosts a near-surface resource of 94,500 ounces of gold.
Managing Director Felicity Repacholi noted that the project remains open at depth and along strike, having seen no drilling since the 1990s.
Its proximity to existing processing infrastructure allows for a rapid evaluation of development pathways as exploration commences.
Recharge has bolstered its leadership team, appointing Samuel Ekins and Ben Jones as directors, with Brett Keillor joining as a technical advisor.
At the time of reporting, Recharge Metals’ share price was $0.030.