Middle Island Resources Ltd. has received firm commitments to raise A$4.0 million to conduct the next phase of exploration and resource drilling at its 100 per cent-owned Sandstone gold project in Western Australia.
The placement of approximately 363.6 million ordinary shares at an issue price of 1.1 cents per share to raise A$4.0 million is being conducted under the company’s existing placement capacity. The placement was oversubscribed, being well supported by new and existing institutional and sophisticated investors.
The proceeds from the placement and existing cash reserves will be used to undertake the next phase of exploration and resource drilling at the Sandstone gold project and feasibility study, including:
- A program of at least 13,000 m of RC and diamond drilling to in-fill and extend the four recent discoveries at McLaren, McIntyre, Old Town Well and Plum Pudding, and any further discoveries.
- Increase and upgrade Mineral Resource estimates prior to completion of the pre-feasibility study anticipated in Q3 2020.
- Working capital towards additional exploration drilling and recommissioning of the Company’s 600,000 ktpa Sandstone processing plant.
- Costs of the offer.