Mining

Far East Gold targets $3.6m equity raising to progress Woyla copper-gold project

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By Imelda Cotton - 
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Australia-based junior explorer Far East Gold (ASX: FEG) will raise $3.6 million to advance flagship Woyla copper-gold project in Indonesia.

The company has received firm commitments from institutional investors to raise $2.1 million at $0.50 per share.

The placement will be completed in a single tranche and is expected to settle at month end.

Additionally, a share purchase plan has been launched at the same $0.50 per share price, which reflects an 18.83% discount to the five-day volume weighted average price before the plan was announced, and a 13.79% discount to the closing price on 16 November.

Eligible shareholders will have the opportunity to apply for up to $30,000 of new fully-paid and ordinary shares.

Woyla exploration

Far East Gold said proceeds from both raisings would be used to progress exploration activities at new areas within the Woyla project in Sumatra, which have opened up as artisanal miners have moved on.

Access to these areas was not expected so soon after the company’s ASX listing in March.

Far East Gold has planned a drilling program at the new locations and will use part of the capital raising to fund its activities.

The company will also commit funds to support local communities and to meet environmental benchmarks, as well as for general working capital and raising costs.

Drilling permission

Earlier this month, Far East Gold received permission from the Indonesian Government to drill the full strike length at Woyla.

Previous owners Barrick Gold and Newcrest Mining (ASX: NCM) had been unable to gain the same permissions during the project’s 25-year history.

The full strike length of known epithermal vein systems over 13,000m has been off limits, with some of the strike zone running through designated forest area.

Far East Gold has previously said it believes Woyla is one of South East Asia’s most highly prospective and undrilled copper gold projects.