Spectrum Metals’ recent drilling program returned further three holes at Penny North, adding high-grade section line to the south in the Penny North lode and providing a better understanding of the continuity of the high-grade mineralisation around the initial gold discovery.
ASX-listed gold miner, Spectrum Metals Limited (ASX: SPX) today announced that it has received a further three holes from recent drilling at Penny North, located 25kms south of the Youanmi mining centre in Western Australia.
Spectrums Managing Director, Paul Adams stated that “At this location, the lode is exhibiting a very strong tenor and builds on the company’s knowledge base of the distribution of high-grade within the lode structure.”
The drilling returned the highest grade intersection of 4m at 105.2 g/t gold in hole SPWRC022 at Penny North which lies down dip of 4m at 35.2 g/t. Hole SPWRC001 and SPWRC021 were the other two of the three original holes drilled into Penny North, intercepting at 2m at 19.7 g/t gold from 115m and 1m at 10.8 g/t gold from 154m, respectively.
“As more results become available, Spectrum expects to be able to discern the orientation of this high-grade zone which in turn will inform its targeting of the gold system down plunge as its program continues,” told Mr Adams.
In the separate announcement to the Australian Securities Exchange, Spectrum Metals also stated that it has entered into an unsecured Loan and Convertible Note Agreement with its largest shareholder, Patina Resources Pty Ltd.
The facility is reportedly for a maximum value of AUD$1.0 million which can be drawn down in minimum tranches of $250,000 at Spectrum’s election. The maximum tenure of the facility has been fixed to 12 months. The report read that the interest will accrue at the rate of 10% per annum, repayable at the Maturity Date in either shares or cash.
There is also a provision for conversion of the loan amount to shares. Its terms include that loan amount can be converted into shares at any time during the term by agreement in writing between the lender and the company. The price for conversion has been agreed to be calculated at a 10% discount to the 15-day VWAP including the business day immediately prior to the conversion date, subject to a minimum conversion share price of 1.5 cents and shareholder approval if required. Further, a maximum of $500,000 could be converted at the time maturity at the discretion of the company.
The company believes that this facility would provide flexibility to draw down funds for working capital to pursue its planned work programs as it continues its aggressive RC drilling program at the recent Penny North discovery and further exploration work along the highly prospective Penny West Shear.
SPX stock price has jumped up 8% to trade at $0.027 on 29 March 2019 (1:54 PM AEST). Over the past 12 months, the stock has edged up 66.67% including as massive as 400% returns in the past three months.
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