- NewPeak Metals (ASX:NPM) has secured binding commitments worth $900,000 under a placement of 300 million shares at an issue price of $0.003 a share.
- The company enjoys a substantial edge attributed to the Tier 1 geographical location of its highly prospective gold projects across Finland, New Zealand and Argentina.
- The private placement will provide an additional pool of funds for exploration and development of the gold projects.
- Drilling campaign at the Cachi and Cap Burn Otago gold projects is anticipated to commence by the end of 2020. Drilling at the Hopeavuori prospect is planned for early 2021.
Gold explorer with premium projects across the globe, NewPeak Metals Ltd (ASX:NPM) has secured binding commitments worth $900,000 before costs under a private placement to sophisticated and qualified institutional investors. The placement involves 300 million fully paid ordinary shares at an issue price of $0.003 per share.
The shares under the placement will rank pari-passu with the company’s existing ordinary shares on issue. The placement shares are anticipated to be issued on or around 4 November 2020, when Appendix 2A will be released.
180 Markets, one of Australia's newest deal sharing platforms, served as the Lead Manager to the equity placement.
Strong Support from Qualified and Sophisticated Investors
NewPeak Metals had recently been approached by several qualified and sophisticated investors. The offer to acquire shares in NPM was accepted by the board, owing to the advantage of addition to the funding pool. The funds are planned to be directed towards further exploration and development of the company’s premium gold projects in Finland, New Zealand and Argentina.
NewPeak Metals’ strong presence in the Tier 1 mining jurisdictions across the globe following its recent entry into Finland and New Zealand has further augmented the prospects for value creation for its investors.
Fundraising to Trigger Exploration Programs Across Multiple Gold Projects
NewPeak Metals has already planned drilling campaigns before the end of 2020 at the Cachi gold project in Argentina and the Cap Burn Otago gold project in New Zealand. The Hopeavuori prospect at the Tampere gold project in Finland is planned to be tested in early 2021.
For details on the drilling campaigns for the Cachi and Hopeavuori projects, please read NewPeak Metals (ASX:NPM) to Commence Maiden Drilling at Cachi Gold Project in December. The details of the drilling campaign at the Cap Burn Otago program will be released shortly.
The main prospects targeted are:
- Hopeavuori prospect at the Tampere gold project in Finland – The historical drilling on the prospect intersected gold grades up to 106.7g/t at shallow depths. Some of the intercepts from previous drilling program are as follows-
- 5m at 19.4 g/t
- 7m at 14.4 g/t
- 0m at 106.7 g/t
- Cachi gold project in Santa Cruz, Argentina - A caldera hosted epithermal gold vein system with several large prospects where rock chip samples returned a grade of 17.8 g/t gold and 50 g/t silver. The diamond channel samples resulted in grades of 9g/t gold and trench samples with 1.2g/t gold over 11 metre width.
- Cap Burn at the Otago gold project in New Zealand - An orogenic gold system in the vicinity of possible north-west extensions of the Hyde-Macraes Shear Zone, which hosts OceanaGold Corporation’s (ASX:OGC) Macreas Mine. Numerous arsenic soil anomalies with size varying up to 600x800m, in conjunction with rock chip samples with grades up to 1.7g/t gold indicate strong potential for gold mineralisation at depth.
Despite COVID-19 affecting some of the operating plans, NewPeak management and in-country personnel are well managing the activities.
NPM traded at $0.003 a share on 29 October 2020 with a market capitalisation of $17.46 million.
(All financial information pertains to Australian Dollar unless stated otherwise.)