In what looks like a herculean effort, Anglo Australian Resources has locked in $5.5m from investors in the worst market conditions for years. Investors shook off Monday’s “flash crash” this week to back Anglo’s vision of developing its Mandilla gold project near Kalgoorlie, underscoring the project’s potential prospectivity. Putting his money where his mouth is, new Anglo MD, Marc Ducler led the way with a $250k personal commitment to the raise.
The placement, which astonishingly is already fully subscribed, will see Anglo place another 55 million shares at $0.10, which will help fund a substantial drilling program of around 30,000 metres of RC and diamond drilling at Mandilla.
Perhaps even more noteworthy is the fact that Anglo managed to hang onto its pants during the raise which was done at a discount to its 30 day VWAP of just 15 percent – a number that would ordinarily have been considered reasonable, but in the worst market conditions since the GFC, it is a good result and speaks volumes about project.
The placement will also provide a good chunk of money for the completion of the company’s maiden resource during the second half of this year, which is sure to be highly anticipated by market punters.
Mr Ducler said: “…this raising [introduces] a number of high-quality Australian and international institutions to our register…”
“…this is a tremendous outcome and validates what we see as an emerging gold discovery 60km from Kalgoorlie on granted Mining Leases.”
Mandilla already has a 38,000-ounce gold resource that was defined back in 2013, however, that number has recently started to look a little pale in light of recent drilling that has included hits like 45 metres grading 2.33 grams per tonne gold from 82 metres downhole.
The Mandilla gold mineralised trend extends for some four kilometres across the Mandilla West, Mandilla East northern extension and the Mandilla South prospects.
Other notable intercepts from the most recent drilling include 42m grading 1.85g/t from 45m and 41m grading 1.36g/t gold from 59m downhole.
The company also plans to run some technical and economic studies alongside what will probably shape up to be a yearlong drilling program.
These studies will bolster and shorten the timeframe of any potential feasibility work and enable Anglo to kick off the approvals process.
There is an old saying that says “buy low and sell high”, but the saying ignores the need for nerves of steel when buying during a low market.
Anglo’s new investors however will most likely have their nerves calmed a little with news that their 10c Anglo investment was already trading on the ASX as high as 13c today.
There is nothing quite as sweet as making money whilst others are heading for the hills – or the balcony.
Is your ASX listed company doing something interesting ? Contact : matt.birney@businessnews.com.au
