Revolver Resources raises $5m to accelerate exploration at copper projects
Revolver Resources (ASX: RRR) has raised $5 million to accelerate exploration across its Osprey and Dianne copper projects in Queensland.
The company received firm commitments to raise $5 million via a placement and convertible loan facility to institutional and sophisticated investors.
Under the placement, Revolver has secured binding commitments to generate $2 million through the issue of 15.69 million shares at $0.13 each.
The placement price represents a 10% discount to Revolver’s last traded price of $0.145 on 24 April.
For every two shares issued, subscribers will receive an unlisted option with a 36-month expiry and exercise price of $0.20.
With new and existing investors supporting the placement, Revolver’s board also committed $650,000 (subject to shareholder approval).
A $3 million convertible loan facility has also been executed with existing shareholder Kamjoh.
Liquidity to accelerate exploration
Revolver managing director Pat Williams said the funding package would provide “immediate liquidity” to the business while minimising dilution.
“The funds raised through this process allow us to accelerate our drilling plans at both Osprey and Dianne, more rapidly pursuing the latent potential on offer across both assets.”
“The Revolver team is excited about having the drill rigs turning and focusing on high-priority, high-potential targets at both projects over the coming months,” Mr Williams added.
Near-term production potential at Dianne
Located in north Queensland, Dianne is prospective for district scale copper mineralisation.
Dianne host a historical high-grade copper mine that produced 63,758 tonnes of ore grading 22.7% copper.
The project has a current JORC resource of 1.62Mt at 1.1% copper, which contains a 6.1% sulphide core.
Revolver has begun near-term production planning for Dianne.
In parallel, the company will complete a heli-gravity survey over the emerging Larramore Volcanic Trend at the project, along with diamond drilling and assaying of high-priority targets.
Osprey is within Queensland’s North West Minerals Province, which Revolver describes as one of the richest mineral producing regions worldwide.
Analysis of samples from Osprey indicates it is prospective for Mt Isa-style iron oxide-copper-gold mineralisation.
A recent heli-electromagnetic survey across the project identified 14 “compelling” targets.
Mr Williams noted the targets are proximal to base metal mineralisation uncovered in historical drilling.
“The recently completed heli-EM survey delivers an impressive number of high-priority conductor targets demonstrating typical Mt-Isa type EM characteristics.”
He said the targets will be refined and prioritised ahead of planned drilling in the second half of the year.
“We believe that recent tenement activity around Osprey by resource majors, Fortescue (ASX: FMG) and Anglo American, is further endorsement of the high and large-scale prospectivity of this area,” Mr Williams added.
The capital raising proceeds will be used to fund the upcoming drilling program at Osprey.