Barra Resources Limited (ASX:BAR) has received firm commitments from professional and sophisticated investors for a placement to raise approximately $2,150,000 to help fund exploration at the Burbanks project in Western Australia.
The firm commitments received also includes management and director participation of $220,000, which will be subject to shareholder approval at the company’s forthcoming Annual General Meeting.
Proceeds from the Placement will principally be used by Barra to fund an aggressive exploration campaign at the Burbanks Gold Project where recorded historic underground production totalled 324,479 ounces at an average grade of 22.7g/t Au from predominantly the upper 140m below surface.
Managing Director and CEO, Chris Hansen, said crucially, mineralisation remains open within the central mining area and there has been limited exploration completed below 250 metres, and no exploration completed below 350m.
Outside of the central mining area (hosting the Birthday Gift & Main Lode deposits), Barra controls over 4.5 kilometres of the highly prospective Burbanks shear which has seen limited exploration below 150 metres despite also hosting the Burbanks North Deposit of 359,998 tonnes @ 1.8g/t Au for 20,400 ounces (Inferred).
The oversubscribed placement was a great show of support from the investment community, serving to validate both the quality of the recent Board appointees, as well as the exploration prospectivity we see at Burbanks,” Mr Hansen said.
“I would like to thank existing shareholders for their continued support and welcome our new investors to the share register.
“The proceeds raised will enable Barra to undertake an aggressive reverse circulation drill programme at Burbanks, targeting down-dip extensions of known high-grade mineralisation.”