Echo Resources raises $15m

Echo Resources has completed a $15 million share placement to fund its exploration strategy at the Yandal gold project.

The company will issue 115 million shares at 13 cents, compared to the current share price of 14 cents.

The miner’s largest shareholder, Northern Star Resources, will maintain its shareholding by subscribing for $3.4 million shares.

The company is also undertaking a share purchase plan to existing shareholders seeking to raise an additional $3 million at 13 cents per share, opening on May 14.

In a statement, Echo Resources said the $12 million will fund the exploration strategy including $6 million for greenfields projects and the other half will be used for brownfield and advanced projects.

About $3 million will provide working capital and costs of the placement and the share purchase plan.

Managing director Victor Rajasooriar said Echo welcomed the strong support from both existing and new investors for this capital raising to support its exploration growth strategy.

“Our first drilling of the highly prospective 20km Hadrian Trend corridor will begin shortly and we look forward to reporting new results from across our large landholding in the Yandal Belt throughout the remainder of 2019,” Mr Rajasooriar said.

Canaccord Genuity and Euroz Securities acted as joint lead managers to the placement.

Sternship Advisers was the corporate advisor to Echo Resources.

The company raised $6.5 million at 10.5 cents per share in December 2018, backed by Northern Star Resources and Maca.

Echo Resources is involved in the exploration and development of gold, copper and nickel in Western Australia and Queensland.

The company’s shares remained steady at 14 cents at 11am AWST.