Western Australia based mineral exploration company, Great Southern Mining Limited (ASX:GSN) has received firm commitments to raise $3,150,000 comprising of the following:
- 70,000,000 Fully Paid Ordinary Shares (Placement Shares*) at $0.045 per Share
- 1 free attaching Listed Option (GSNOA*) for every 4 Placement Shares issued
- An additional 2,500,000 GSNOA* Listed Options and 10,000,000 unlisted options (exercisable at $0.06 on or before 4 September 2022) will be issued for corporate services to the Lead Manager
The share price of $0.45 per share indicates a 1.69% discount to the 15- day volume-weighted average price and a discount of 6.25% to the last closing price.
GSN declared that the shares issued under the Placement as well as Listed Options shall rank equally and carry the same terms as the securities on issue, the Listed Options have an exercise price of $0.05 each, on or before 4 September 2022.
The Company intends to utilise the proceeds from the capital raising towards the financing of accelerated exploration programs over the coming months at its Cox’s Find Gold Project in Western Australia.
In addition to Cox’s Find, GSN has been actively engaged in progressing activities at its Mon Ami Gold Project Edinburgh Park Project. GSN had recently reported highly encouraging results from the Hyperspectral Survey conducted at its Edinburgh Park in North Queensland and co-funded with Evolution Mining Limited.
On this backdrop, the Company looks forward to utilising a part of its funds raised towards
- Commencement of drill-out programs at the Mon Ami Gold Project in Western Australia
- Continuing the targeting and field mapping programs at Edinburgh Park in North Queensland
Cox’s Find is a highly lucrative opportunity for GSN located in highly endowed gold districts in Western Australia and has returned highly encouraging results from the maiden drilling program. Results following a successful RC drilling campaign included the following high-grade assays:
- 19CFRC009 - 5m at 14.54 g/t gold from 140m including 2m at 28.85 g/t from 140m;
- 19CFRC011 - 8m at 6.61 g/t gold from 128m including 2m at 19.92 g/t from 134m;
- 19CFRC013 - 5m at 31.23 g/t gold from 134m including 1m at 143.0 g/t gold from 135m;
During March 2020, GSN had applied for a highly strategic tenement, E38/3476, to significantly add prospective tenure and potential infrastructure space to its 100% owned Cox’s Find Gold Project and has commenced a Tenement-wide Aircore Drilling Program at the project.
The Company looks forward to strong news flow in the future as the drilling program kicks off in the coming week
Since this announcement, the GSN stock is up by 17%, as on 13 May 2020 closing price of $0.061.