Gateway Mining Limited (ASX: GML) is into the exploration of minerals with a target of large-scale, quality gold deposits at its Gidgee Gold Project and the group is based out of Western Australia.
The company today, on 10th April 2019, announced that it has completed a capital raising of A$2.0 million to institutional, professional and sophisticated investors to support a major new phase of drilling and exploration at its primary Gidgee Gold Project in Western Australia, which is fully owned by the company.
The new exploration program will build on the company’s drilling success over the past 12 months, focusing on an impressive pipeline of targets ranging from advanced prospects, such as Whistler and Montague to the emerging potential of the Montague Granodiorite contact, where Gateway is targeting large-scale gold potential plus a suite of shallow regional targets with the potential to host a significant oxide gold component.
The placement comprised the issue of 154,988,385 shares at an issue price of $0.013 per share. It was supported by existing and new investors, subject to shareholders approval, by the company’s directors. The placement was managed by JP Equity Partners.
The placement will be issued in two tranches as the participation of the company’s directors in the placement is subject to shareholder approval. Tranche 1 includes the issue of 140,526,846 shares to institutional, professional and sophisticated investors using the company’s capacity under ASX Listing rule 7.1, which will not require shareholder approval and Tranche 2 includes 14,461,539 shares to directors of the company or their nominees, subject to shareholder approval being obtained at a general meeting of shareholders.
The issue of the Tranche 1 shares is expected to occur on Tuesday 16 April 2019, and the Tranche 2 shares will be issued immediately after the general meeting of shareholders post-approval.
The shares issued under the placement are fully-paid ordinary shares and will rank equally with the shares currently on issue. The proceeds from the placement will be used in the upcoming exploration programs at the Gidgee Project as part of the company’s recently announced strategy to accelerate exploration across the project. Moreover, the proceeds will also be used for corporate and general working capital purposes.
The key upcoming exploration activities will include drilling to test strike and depth extensions of the Whistler and Montague gold deposits ahead of maiden JORC Mineral Resource estimates. Drilling will be done to test the recently identified southern extensions of the Whistler deposit, including the newly identified 1.25km prospective corridor along the Montague Granodiorite contact zone. Drill testing of other regional targets will be done to test the broader potential of the Montague Granodiorite contact and initial testing of emerging shallow oxide targets such as Victory Creek.
On the price-performance front, the stock of Gateway Mining Limited was trading at A$0.014, an increase of ~7.69% during the day’s trade with a market capitalisation of ~A$12.18 million (10 April 2019 AEST 02:35 PM). The stock has generated a YTD return of 8.33%, with negative returns of 23.53% and 13.33% over the past six months and one-month period, respectively. Its 52-week high price stands at A$0.031, and 52-week low price stands at A$0.011, with an average trading volume of ~2.08 million.