Golden Mile Resources - $480,250 Capital Raise for Pearl Copper Project Expansion
GOLDEN MILE RESOURCES LTD (G88) Share Update October 2024 Friday 25th
Golden Mile Resources Announces $480,250 Capital Raise for Pearl Exploration
Golden Mile Resources Ltd (ASX: G88) has announced a successful capital raise of $480,250 to fund exploration activities at the Pearl Copper Project in Arizona, USA.
Instant Summary:
- Raised $480,250 through institutional and sophisticated investors.
- Issue of 48,025,000 new shares at $0.010 per share.
- Funds to support exploration at Pearl Copper Project in Arizona.
- Shareholders to vote on approval in December 2024.
Capital Raise Details
Golden Mile Resources Ltd has secured commitments to raise $480,250 through the issuance of 48,025,000 new fully paid ordinary shares at an issue price of $0.010 per share. This price represents a 30% discount to the 15-day VWAP of $0.143, making it an attractive opportunity for investors.
The funds raised will be used to finance additional exploration work, including geochemistry, detailed geological mapping, geophysics, and drilling at the Pearl Copper Project in Arizona. The project is located in the San Manuel mining district, a region known for its rich copper deposits.
Project Overview
The Pearl Copper Project is situated within the Laramide Porphyry Copper Province, a major copper-producing area in the USA. The project is strategically located near BHP's San Manuel-Kalamazoo Mine, one of the largest deposits in the region.
Arizona's favorable mining jurisdiction and well-established infrastructure make it an ideal location for Golden Mile's exploration activities. The company aims to leverage these advantages to enhance its exploration efforts and potentially uncover significant copper resources.
Next Steps
The issuance of shares and options under the placement is subject to shareholder approval, which will be sought at a meeting scheduled for December 2024. Shareholders will have the opportunity to vote on the proposed issuance, which includes one unlisted option for every two shares, with an exercise price of $0.02 expiring three years from the date of issue.
The capital raise is expected to positively impact Golden Mile Resources by providing the necessary funding to accelerate exploration activities at the Pearl Copper Project. This could lead to significant discoveries and enhance the company's asset base, potentially driving future growth and increasing shareholder value.
Investor Reaction:
Analysts have generally reacted positively to the capital raise, noting the strategic importance of the Pearl Copper Project and the potential for significant resource discoveries. The discount offered on the share price is seen as an attractive entry point for investors.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting in December 2024 and the progress of exploration activities at the Pearl Copper Project. The successful execution of the exploration program could unlock substantial value for Golden Mile Resources and its shareholders.