Helix Resources Limited (ASX: HLX) has completed an oversubscribed share placement to raise gross proceeds of $1.2 million.
Helix Managing Director Mick Wilson said the placement funds will allow Helix to accelerate its current exploration strategy at the Collerina Copper Project in Central NSW.
The exploration programme is designed to demonstrate that economic copper grades previously encountered in the Central Zone of the Collerina Copper Deposit continue at depth and that potential contained copper tonnages are of a scale that could sustain a stand‐alone mining operation.
Mr Wilson said Helix plans to expand the exploration program at the Collerina Copper Deposit, allowing it to continue to drill test recent Down Hole Electro Magnetic (DHEM) conductor positions modelled in the dip plane of the Central Zone.
Regional prospects identified along the Collerina Copper Trend may also be tested with initial Reverse Circular (RC) drilling and geophysical surveys.
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In addition, exploration is planned to commence on the 100% owned tenements covering prospective trends along strike and adjacent to the Collerina Copper Trend.
The Quanda (EL438) and Fiveways (EL7439) Projects host approximately 60km of additional regional copper trends, which in addition to copper, is also considered prospective for lateritic nickel‐cobalt mineralisation, and are located potentially along the same regional trend as Clean Teq and Australian Mines’ nickel‐cobalt projects.
Both styles of mineralisation (VMS style copper and lateritic nickel‐cobalt) are planned to be assessed through first‐pass reconnaissance exploration activities anticipated to include both geophysical surveys and drilling. These programs have the potential to rapidly add value from these largely untested regional assets.
The vompany plans on applying a portion of the placement funds to advance the Mundarlo Copper Project located near Gundagai NSW, where Helix is currently earning a 60% joint venture interest (with a right to proceed to an 80% ownership interest). A discrete EM conductor has been identified at the Mundarlo Copper.
Mr Wilson said the project in a favourable geological setting adjacent to the regionally significant Gilmore Suture Zone. The sole Lead Manager of the placement was Taylor Collison. The Company will issue the 40,000,000.
The oversubscribed placement was undertaken at $0.03 per share, a zero discount to the last market price (as at the close of trade on 21 November 2017). Funds were raised from both institutional and sophisticated investors.