Yandal Resources Ltd (ASX: YRL) has successfully raised $6 million to help fund an aggressive exploration campaign at its Western Australian gold prospects.
DGO Gold Limited (ASX: DGO, “DGO”) subscribed for eight million shares at $0.50 per share as part of the capital raising. The capital raising was also supported by one other institutional investor, Regal Funds Management Pty Ltd (RFM) taking four million shares at $0.50 per share. The placement price of $0.50 per share represents a 7.1% premium to the 5 day VWAP of Yandal Resources’ shares and a 7.4% discount to the last closing price.
Managing Director, Lorry Hughes, said the capital raised will accelerate the company’s exploration programmes including resource development and extension drilling at the Flushing Meadows prospect, advanced drilling at the Gordons Dam prospect to test beneath and along strike of the high grade palaeochannel and further exploration at the Ironstone Well, Barwidgee and Mt McClure projects.
We are very pleased to have new strategic shareholders on the register. This is a great endorsement of the quality and potential of our asset portfolio,” Mr Hughes said.
“In particular we welcome DGO which is backed by significant gold investors and led by Eduard Eshuys who has a proven track record of gold discovery in the Yandal and Norseman-Wiluna Greenstone Belts.
“We look forward to their technical and strategic contribution to our drilling programmes.”