Argent Minerals (ASX: ARD) is accelerating a high impact reverse circulation (RC) drilling campaign at its Kempfield project in New South Wales’ Lachlan Fold Belt after raising $2.2 million through a heavily oversubscribed placement.
The company today emerged from a trading halt to reveal it has received commitments from sophisticated and professional investors to raise the funds through the issue of 40 million fully paid ordinary shares priced at $0.055 each.
The placement shares will also attract a one-for-two free attaching listed option, each with an exercise price of $0.05 and an expiry of 29 October 2021.
Argent managing director and chief executive officer George Karageorge said the company is “overwhelmed” by the result of the placement.
“This will allow Argent to fast track the company’s planned drilling over most project areas and now undertake a major drilling program to upgrade the Kempfield polymetallic resource,” he said.
The capital raised will be used to fund a further two high impact drilling programs, thereby resulting in a total of six drilling campaigns being conducted over the Kempfield, West Wyalong, Loch Lily and the historic Pine Ridge gold mine within the next 12 months.
Argent said it planned to accelerate its exploration programs to take advantage of the recent breakout of the gold and silver prices.
Gold reached a high of US$2,070 per ounce last Thursday while silver reached a high of US$29.50/oz on Monday.
The placement shares and listed options are due to be issued on or around 17 August.
Argent is targeting copper, silver, gold and lead at its 100% owned Kempfield project, located 41km south of Newcrest Mining’s (ASX: NCM) Cadia operation in NSW.
A Stage 1 3,000m RC drilling program is already underway at Kempfield project, targeting a copper-gold anomaly at Colossal Copper Reef.
A Stage 2 2,500m RC and combined diamond drilling program had previously received board approval to start in February/March 2021. Argent today said this program will be brought forward “as soon as drilling approvals are received” so to extend the current polymetallic resource.
Pine Ridge drilling
A Stage 2 2,200m RC drilling program at the Pine Ridge gold mine in NSW will commence in October and the company has also approved funding for a Stage 3 3,000m RC and diamond drilling campaign, planned for March/April 2021.
The Stage 3 program will target a new geophysical anomaly that is expected to identify drill targets located on the same regional gold belt structure hosting Regis Resources’ (ASX: RRL) 2-million-ounce McPhillamy’s gold project.
West Wyalong drilling
Argent was awarded $200,000 from the NSW government in April for the drilling of the West Wyalong gold-copper porphyry project.
A 3,000m RC and 1,500m diamond drilling program is scheduled to begin in November “or as soon as the land access approval and harvesting is completed prior to Christmas”.
Loch Lily drilling
The NSW government also awarded Argent $55,000 to fund drilling of the Loch Lily Kars gold-copper porphyry district.
A Stage 2 program comprising 1,000m of RC and 1,000m of diamond drilling is due to start in April.
In February, Argent was successfully awarded an exploration tenement in Tasmania known as the Mt Farrell project area.
The company said it plans to conduct reconnaissance field work over the block in conjunction with the Loch Lily drilling program.
It said it also planned to assess the entire Tasmanian tenement packages in the next quarter with a strategic review to begin “as soon as possible”.