Sipa Resources in trading halt ahead of capital raising news

Sipa Resources Ltd (ASX:SRI) has been granted a trading halt by the ASX ahead of a capital raising announcement. The company’s securities will remain halted until Friday, September 18, or when an announcement is released to the market, whichever occurs earliest. Shares last traded at 9 cents and have risen from 5.1 cents since the market close on July 6. Progress on WA gold and base metal projects  Sipa has made progress on three of its projects, with drill testing of base-metal gossan targets set to take place next month at its Wolfe Basin Base Metals Project and a detailed aeromagnetic survey to start at Warralong Gold Project, also in October. In addition, conditions precedent to a farm-in and joint venture agreement with Rio Tinto Exploration Pty Ltd (RTX) for the Paterson North Copper-Gold Project have been satisfied, and RTX now can subscribe for 2.5 million ordinary Sipa shares. The company said the planned drilling to test priority base-metal gossan targets at the Wolfe Basin project in Western Australia was on track to commence within weeks, following the completion of a heritage survey over these never previously drilled target areas. A ground geophysics survey team has mobilised to site and will shortly complete an extensive gradient array IP survey to allow drill hole locations to be refined. The drilling company has been contracted and the exact timing of the start of drilling will be advised over the coming weeks.