REZ Group Secures Funding for Strategic Drilling at East Menzies Gold Project
RESOURCES & ENERGY GROUP LIMITED (REZ) Share Update August 2024 Tuesday 6th
REZ Group Raises $500k for East Menzies Gold Project Drilling
Resources & Energy Group Limited (ASX: REZ) has announced the successful raising of $500,000 through a share placement to fund a strategic drilling program at the East Menzies Gold Project.
Instant Summary:
- REZ receives firm commitments for a $500k share placement.
- Funds allocated for strategic drilling at East Menzies Gold Project.
- High-quality targets identified with potential for immediate value.
- Initial vat leach campaign to treat 5000 tonnes of ore at ~4.6g/t Au.
Capital Raising and Strategic Drilling
Resources & Energy Group Limited (ASX: REZ) has successfully raised $500,000 through a share placement to professional and sophisticated investors. The funds will be used to conduct a strategic drilling program at the East Menzies Gold Project, specifically targeting the Goodenough Gold prospect.
The placement involves the issue of 25,000,000 new fully paid ordinary shares at $0.02 per share, representing a 13% discount to the last trading price. Each new share comes with one free attaching 4-cent option, expiring on 15 June 2027.
Project Details
The East Menzies Gold Project has identified high-quality targets that offer the potential for immediate value through extensions and satellite mineralization. The initial vat leach campaign will treat 5000 tonnes of ore with a diluted grade of approximately 4.6g/t Au. This campaign aims to establish the economics of the process before scaling up to treat additional shallow resources identified at the Maranoa and Goodenough gold deposits.
The Maranoa deposit holds an estimated 8,000 ounces of gold, while the Goodenough deposit contains approximately 43,000 ounces. These deposits have been thoroughly drilled to identify near-term mining opportunities within the cluster of high-grade, near-surface deposits on the western side of the East Menzies project area.
Management's Perspective
REZ Group Managing Director J. Daniel Moore expressed enthusiasm about the capital raise, stating, 'We are thrilled to announce the successful completion of this capital raise, which received enthusiastic support from both new and existing investors. We are confident in our strategic direction and eagerly anticipate resuming gold production at our flagship East Menzies Project in the near future.'
The successful capital raise and the strategic drilling program are likely to positively impact REZ Group's stock. The identification of high-quality targets and the potential for immediate value could boost investor confidence and attract further investment. The initial vat leach campaign's success will be crucial in determining the project's long-term viability and profitability.
Investor Reaction:
Analysts are expected to react positively to the news, given the strategic nature of the drilling program and the potential for immediate value. The successful capital raise at a 13% discount indicates strong investor confidence in the company's direction. However, the actual impact on the stock price will depend on the results of the drilling program and the initial vat leach campaign.
Conclusion:
Investors should keep a close eye on the progress of the drilling program and the initial vat leach campaign at the East Menzies Gold Project. The successful execution of these plans could significantly enhance the project's value and positively impact REZ Group's stock. Stay tuned for further updates and consider the potential long-term benefits of this strategic initiative.