WIN Metals raises $3.6m for Butchers Creek acquisition and exploration

WIN Metals (ASX: WIN) has received firm commitments to raise $3.6 million to fund acquisition costs and exploration work at the high-grade Butchers Creek gold project in Western Australia.

The company has launched a conditional share placement to new and existing sophisticated and professional investors that will see the issue of 144 million shares priced at $0.025 each, together with one free attaching option for every two shares issued.

The options will be exercisable at $0.044 each and will expire 18 months after issue.

Historic gold centre

Proceeds from the capital raising will be put towards the acquisition of the Butchers Creek historic gold production centre from Meteoric Resources (ASX: MEI).

Located 30 kilometres east of Halls Creek in WA’s east Kimberley region, the project comprises a mineral resource estimate of 5.6 million tonnes at 2 grams per tonne for 357,000 ounces of gold, as well as a series of high-order drill targets at over 60 known gold occurrences across 100 sq km.

Staged consideration for the transaction will include an upfront exclusivity fee of $50,000, plus a cash payment of $950,000 and $1.75 million worth of WIN shares upon settlement.

WIN will make further payments to Meteoric of $1m 18 months after settlement and an additional $1.25m upon the production of 20,000oz of gold from Butchers Creek.

Maiden drilling

Kalgoorlie-based Raglan Drilling will embark on a maiden drilling program at Butchers Creek this month.

Comprising 23 reverse circulation holes for a total of 7,000m, the program will target resource in-fill drilling at the Far South extension of Butchers Creek, as well as the Mt Bradley and Golden Crown extensions at depth.

WIN has agreed to issue Raglan with up to 6 million shares at a deemed value of $0.025 each as partial consideration for its services.

“Our team is mobilising and we expect to have the drill bit turning at Butchers Creek in under a fortnight,” WIN managing director Steve Norregaard said.

“We have hit the ground running and exciting times lie ahead.”