Yandal Resources Ltd (ASX:YRL) has received firm commitments to raise $A2.5 million through a well-supported placement of 31.2 million fully paid ordinary shares at A$0.08 per share.
Notably, the placement was oversubscribed with strong support received from major shareholders and significant interest from new investors.
Following the settlement, Yandal will be well-funded with A$7.7 million cash on hand to accelerate exploration across key target areas in the highly prospective Yandal and Norseman-Wiluna Greenstone Belts of Western Australia.
Solid funding runway
Commenting on the capital raising, Yandal managing director Tim Kennedy said: “We’re very pleased with the support received from the participants of this capital raising who are keen to see the company have a solid funding runway to expand and further accelerate exploration activities at our key target areas.
"We are in the advanced planning stage of our forthcoming drilling program at Ironstone Well-Barwidgee in the Northern Yandal Belt which will include RC and diamond drill testing of key targets including Oblique, Quarter Moon and New England Granite.
"Weather permitting, we expect to mobilise in early March and look forward to reporting progress as results come to hand.”
Use of funds
Funds from the placement will be primarily focused on:
- drilling, exploration target testing and MRE related activities at the Ironstone Well, Barwidgee, Mt McClure and Gordons projects;
- general exploration activities; and
- working capital
Placement summary
Placement shares priced at $0.08, being a discount of 5.9% to the 5-day VWAP and 11.1% to the last traded price.
The placement will be unconditional and in accordance with the company’s current placement capacity under ASX Listing Rule 7.1.
All new shares issued will rank equally with existing shares on issue, and the company will apply for quotation of the new shares.
This is a “top up” of the November 2023 capital raising in response to positive drilling results announced in January.
MST Financial acted as lead manager to the placement.