Breaker Resources NL (ASX: BRB) has agreed a non-brokered $8 million share placement to Electrum Strategic Opportunities Fund II LP, a major US-based private equity fund focused on precious metals.
Tom Sanders, Breaker’s Executive Chairman, said the proceeds will be used to ramp up reverse circulation (RC) and diamond drilling aimed at growing the one million-ounce Bombora resource at the company’s Lake Roe Gold Project near Kalgoorlie.
Upon closing of the Placement, Electrum is expected to own approximately 9.95% of the issued shares of Breaker.
“Breaker welcomes the support of a prominent North American institutional fund and their support is seen as an expression of confidence in the growth potential of the company’s Lake Roe Gold Project,” Mr Sanders said.
Electrum Group holds significant interests in a number of major global gold development projects including the 45Moz Donlin Gold Project in Alaska via its interest in NovaGold Resources Inc. and the 11Moz Livengood Project also in Alaska via its interest in International Tower Hill Mines Ltd, among others.
Electrum was founded by the family of Thomas S. Kaplan, an American entrepreneur, conservationist and philanthropist, who serves as Electrum Group’s Chairman and Chief Investment Officer.
The Placement follows a strategic review undertaken by Breaker aimed at unlocking the full value of the company’s Lake Roe Gold Project.
As a result of the strategic review, the Board has formed the view that the best way to deliver value to shareholders is to expand the Resource base through further drilling,” Mr Sanders said.
“The Company has consequently placed the Lake Roe pre-feasibility study on hold and has decided to partner with Electrum with the shared objective of advancing the Lake Roe Project along the value chain through expansion of the Project’s existing resource. “