Prominent investor and prospector Mark Creasy’s Yandal Investments has entered into a subscription agreement with Zuleika Gold worth $3 million. While still subject to shareholder approval, the deal could see Yandal increase its voting power in Zuleika from 19.12 per cent up to 42.53 per cent after Mr Creasy’s company purchased 100 million shares in the explorer for the same amount back in March last year.
The proceeds of the subscription will be used to fund the company’s planned exploration programs across multiple targets at its swag of Kalgoorlie gold projects. The subscription price came at a 28 per cent premium to Zuleika’s previous closing price of 1.1 cents.
As part of the deal, Yandal has agreed to subscribe for more than 213 million fully paid ordinary shares at an issue price of just over 1.4c per share to raise the $3 million.
Zuleika Gold executive chair Annie Guo said: “Your Board is very pleased that Mr Creasy, already a substantial shareholder, has agreed to inject a further $3,000,000 in working capital into the Company. Mr Creasy’s record as a successful prospector and investor has resulted in him being one of the largest exploration land holders in Western Australia. As such, Zuleika is excited that its strategic Kalgoorlie focussed tenement portfolio will continue to be funded by Mr Creasy.”
Yandal has agreed to pay the subscription amount within two business days following shareholder approval. Management says other terms and conditions of the deal are considered standard for an agreement of this nature.
The $3 million is expected to be used to fund drilling and other exploration activities at the Zuleika, Credo, Goongarrie and Menzies gold projects, repayment of a related party loan, working capital and towards any possible acquisition of new assets or investments.
Earlier this year, the company wrapped up a swag of soil-sampling surveys at Zuleika, Goongarrie and Menzies, with more than 2000 samples collected at the three operations. Management previously highlighted a 2 km-long gold anomaly coincident with a string of historical underground workings at its Menzies project, a mere 120km north of Kalgoorlie along the Goldfields Highway.
More than 1000 samples were gathered at Zuleika’s namesake project covering the Browns Dam, Breakaway Dam, Castle East, Little T, Star Well, White Flag Lake, Zuleika North and Carbine prospects.
A total of 743 samples were collected at Goongarrie, which sits 50km north of Ora Banda Mining’s 5.5 million-ounce Siberia mining centre.
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By Michael Philipps
