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(Alliance News) - Great Western Mining Corp PLC on Wednesday announced it has completed a GBP1.1 million share placing which will help accelerate its drilling activity in Nevada.
Shares in Great Western Mining were down 14% at 0.22 pence in London in afternoon trading.
The company, which is exploring and developing multiple early-stage gold, silver and copper targets in Nevada, successfully completes a 550.0 million share placing at 0.20 pence per share, raising GBP1.1 million gross.
The placing was arranged by Monecor (London) Ltd, trading as ETX Capital, which has been granted 20.0 million broker warrants carrying the tight to subscribe for one new share at 0.20p per share for two years.
An additional 275.0 million warrants will be granted on a basis of one warrant for every two placing shares, with the warrants carrying the right to subscribe for one new share at 0.30p each for two years.
The newly raised funds will go towards spoil heap recovery at Mineral Jackpot, where the company is on track to start producing first gold and silver before 2020-end on a trial basis. Drilling at the Bass Mine prospect at Mineral Jackpot will be another use for funds.
The money will also be used for drilling at the Trafalgar Hills prospect at Great Western's Olympic Gold property and for an IP survey over the OMCO mine extension.
Additionally, the placing proceeds will help with drilling at the Southern Alternation Zone prospect, and in further evaluating Great Western's short-list of new opportunities for silver and gold in Nevada.
Chair Brian Hall said: "We are already funded for our immediate needs and for completion of the 2020 work programme. Adding these new placing funds will allow the company to commit to extensive drilling, with approximately GBP2 million net cash and able to sign up equipment in a busy market. This will enable us to move ahead strongly and drill the projects we are working on, with the flexibility to deploy funds where they will have the most effect and react to positive results with follow-up work.
"Our drilling plans remain subject to regulatory consent which we anticipate being able to obtain in a timely manner. We will as always keep shareholders updated."
By Anna Farley; annafarley@alliancenews.com
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