With plans for a big discovery in 2021, Resolution Minerals (ASX: RML) has topped up its cash reserves via a strongly supported $3.25 million placement.
The placement was backed by a cornerstone investor Fresh Equities which committed $2 million, with Resolution directors also seeking approval to participate.
Sophisticated investors have agreed to scoop up Resolution’s shares at $0.028 each, which come with options on a one-for-two basis. The options expire 12 months from the date of issue and are exercisable at $0.042.
The placement of $0.028 per share is a 15% discount to the company’s closing price of $0.033 on the 18 February.
Placement funds to advance 64North and copper-cobalt assets
Resolution managing director Duncan Chessell said the placement proceeds would be used to drill test potential gold and copper prospects across 64North in Alaska and the company’s Australian projects.
As part of the drilling plans in Australia, Resolution will be firming up targets at Wollogorang and Benmara.
“Global uncertainty and volatility retain gold’s attractiveness and the voracious appetite for copper, cobalt, nickel, aluminium and other battery metals required to convert the world from fossil fuels to green electrical alternatives is now a short-medium and long-term reality,” Mr Chessell added.
On the hunt for a big discovery
During 2020, Resolution completed a large regional exploration program across the entire 64North project and assessed 31 new prospects.
Mr Chessell said the work had generated “extensive” data and resulted in numerous large-scale targets to test this year, including new opportunities that had been previously overlooked.
One of those opportunities is identifying a large bulk tonnage-style gold deposit.
“Our team identified a number of fantastic targets of potential high-grade Pogo repeats at East Pogo and multiple large-scale potential intrusion hosted Fort Knox-style systems at the Sunrise and E1 prospects.”
“This process led us to challenge our original assumptions and reconsider 64North as multiple projects under a single banner,” Mr Chessell explained.
The company plans to undertake a 3,000m rotary airblast drilling program at Sunrise in March along with a 2,000m RAB program at the East Pogo targets.
In Australia, at Wollogorang and Benmara, Resolution plans to take advantage of the renewed interest in copper and battery minerals.
Mr Chessell said the company would begin drilling Wollogorang in May at the Gregjo prospect, while at Benmara geophysics and geochemical work will be carried out.
“Resolution’s mission is to hunt for big scale gold and battery metal targets in big country – in 2021 I believe the company is in the best position ever to deliver discovery success,” Mr Chessell added.