Bardoc Gold (ASX: BDC) says it will “rapidly advance” the next stage of its multi-pronged growth and development strategy in WA’s rich Kalgoorlie district after unveiling a $15 million capital raising.
The North Fremantle-based company, which is led by the key founding directors of lithium juggernaut Pilbara Minerals (ASX: PLS), said it has received firm commitments to raise $12 million through a share placement to strategic investors at 10c.
Plus, it will launch a Share Purchase Plan to existing shareholders to raise up to an additional $3 million at the same price.
Bardoc chief executive Robert Ryan said the outstanding success of the capital raising reflected growing market recognition and confidence in the “scale, potential and significance” of Bardoc’s namesake project, located just north of Kalgoorlie in WA.
The project already boasts a substantial resource inventory totalling 38.6 million tonnes at 2.1g/t for 2.6 million ounces.
The company recently added a JORC Resource totalling 111,600oz through the strategic purchase of the Mayday and North Kanowna Star gold projects, located immediately east.
And a project-wide resource update is anticipated by the end of September, reflecting the results of drilling programs completed earlier this year.
Bardoc said the proceeds of the capital raising would be used to progress the Company’s Kalgoorlie gold strategy “to the next level”, with key planned activities including high-impact drilling programs across newly-identified exploration targets and to fund development studies.
The funds will also be used to target “value-accretive” acquisitions and M&A opportunities in the Kalgoorlie region and to aggressively explore some of its recently acquired projects.
Ryan said the next phase of activity would be “very much a continuation” of the strategy implemented over the past two years, based on aggressive exploration, selective and value-accretive acquisitions and completion of feasibility studies.
Our objective is to rapidly build a sizeable and high-quality gold resource in the Kalgoorlie region by consolidating gold deposits located within economic haulage distance of a potential centrally located processing facility and continuing to expand our strategic exploration footprint and growth pipeline,” he said.
“The strong support shown by current and new sophisticated investors and institutions reflects the fact that we are already well advanced towards achieving these goals as a result of the exploration success achieved this year and the value-accretive acquisitions we have announced.”