Warriedar Resources Announces A$4.0 Million Placement for Exploration Growth
WA8 (WA8) Share Update July 2024 Monday 29th
Warriedar Resources Secures A$4.0M for Growth Exploration
Warriedar Resources Limited (ASX: WA8) has announced a successful A$4.0 million placement to fund its growth-focused exploration activities in Western Australia.
Instant Summary:
- A$4.0 million raised through placement to sophisticated and institutional investors.
- Issue price of A$0.057 per share, an 18.6% discount to last closing price.
- Strong support from new and existing investors.
- Total cash position of approximately A$9.6 million post-settlement.
- Funds to support exploration in the Murchison region, including the Golden Range and Fields Find Projects.
- Ongoing drilling at Ricciardo and M1 deposits within the 25km-long 'Golden Corridor'.
- Updated Mineral Resource Estimate for Ricciardo deposit expected in Q4 CY2024.
Placement Details
Warriedar Resources Limited (ASX: WA8) has successfully raised A$4.0 million through a placement of approximately 70.7 million fully paid ordinary shares at an issue price of A$0.057 per share. This represents an 18.6% discount to the company's last closing price of A$0.07 per share on 25 July 2024.
The placement received strong support from both new investors and existing shareholders, demonstrating confidence in Warriedar's growth potential. The funds raised will complement the upcoming receipt of A$2 million from the sale of the non-core Golden Range camp facility. Together with existing cash of A$3.6 million as of 30 June 2024, Warriedar will have a robust cash position of approximately A$9.6 million post-settlement.
Use of Proceeds
The proceeds from the placement will be used to fund growth-focused exploration drilling at Warriedar's key projects in the Murchison region of Western Australia, including the Golden Range and Fields Find Projects. The ongoing diamond tails drilling program at the Ricciardo and M1 deposits has been expanded to 2,500 meters following initial high-grade extensional successes.
Ricciardo and M1 are part of the 25km-long 'Golden Corridor' at Golden Range, which hosts six discrete deposits that are open at depth and possess significant growth potential. An updated Mineral Resource Estimate for the flagship Ricciardo deposit is targeted for Q4 CY2024.
Management Comments
Warriedar Managing Director and CEO, Amanda Buckingham, expressed gratitude to existing shareholders and welcomed new investors. She emphasized that the company is now well-positioned to aggressively build on the emerging opportunities at the Golden Range Project, with a focus on adding high-quality, high-grade gold ounces to its resource base.
Placement Timetable
The settlement of new shares is expected to occur on 5 August 2024, with allotment and trading of new shares commencing on 6 August 2024. Bell Potter Securities Limited, Canaccord Genuity (Australia) Limited, and Argonaut Securities Pty Ltd acted as Joint Lead Managers and Bookrunners for the placement.
The successful placement and strong cash position will enable Warriedar to accelerate its exploration activities, potentially leading to significant resource growth. This could positively impact the company's stock price as investors anticipate increased gold production and resource estimates. However, the 18.6% discount on the placement shares may temporarily affect the stock price.
Investor Reaction:
Analysts are likely to view the placement positively, given the strong support from investors and the strategic use of funds for exploration. The potential for resource growth in the Murchison region could attract further investor interest. However, some investors may be cautious about the immediate dilution effect due to the discounted share price.
Conclusion:
Investors should monitor Warriedar's upcoming drilling results and the updated Mineral Resource Estimate for the Ricciardo deposit. The company's strategic focus on high-grade gold exploration in Western Australia positions it well for future growth. Staying informed on Warriedar's progress will be crucial for making informed investment decisions.