Great Boulder Resources launches $3.1 million capital raising to fund drilling at gold projects

Great Boulder Resources Ltd (ASX:GBR) has launched a $3.1 million capital raising to fund aggressive exploration programs at the Side Well and Whitehead gold projects, both in WA.  The company has already received binding commitments for a single tranche placement to raise $1.65 million before costs at $0.035 per share from new, high-quality institutional, sophisticated and professional investors, as well as existing significant shareholders of the company.  In addition to the placement, Great Boulder is launching a two-for-nine non-renounceable entitlements offer to raise around $1.46 million at $0.035 per share.  The placement and entitlement offer will position the company with a strong cash balance of up to around $4.3 million to execute high impact drill campaigns at Side Well and Whiteheads, following significant recent results and targeting primary gold zones and strike extensions. Strong endorsement of portfolio Great Boulder managing director Andrew Paterson said: “The overwhelming demand from institutional and sophisticated investors is a strong endorsement of Great Boulder’s WA gold and base metal asset portfolio and its exploration team. “This capital raising provides us with balance sheet support to execute our extensive drilling and exploration programs at Side Well and Whiteheads. “We are pleased to welcome a number of new sophisticated and institutional shareholders and thank our existing shareholders for their continued support.” Placement The issue price of the placement shares represents an 18.6% discount to Great Boulder’s last close on February 19, 2021, of $0.043, a 14.2% discount to the 5-day VWAP of $0.0408 and a 16.9% discount to the 15-day VWAP of $0.0421. Placement shares will be issued on or about Wednesday, March 4, 2021 under Great Boulder’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. Entitlement offer The pricing and terms of the entitlements offer have been set so that shareholders can obtain new shares at the same price and terms as subscribers under the placement. Entitlements may only be exercised by eligible shareholders with a registered address on the company’s share register in Australia. Placement shareholders will not be entitled to participate in the entitlement offer. Use of funds The placement and the entitlements offer will raise up to $3.11 million, and in conjunction with existing cash reserves of $1.2 million, it will allow Great Boulder to fund: Reverse circulation (RC)/aircore (AC) drilling at the Side Well Gold Project to follow-up significant intersections and target primary gold zones and strike extensions; RC/AC drilling at the Whiteheads Gold Project upon the completion of gravity data processing and target delineation; A review of nickel sulphide potential at Whiteheads, which may include an airborne electromagnetic survey; A strategic review of Yamarna Base Metals Project; and Corporate costs and general working capital requirements. Strong near-term news flow Strong near-term news flow is expected, with RC drill programs scheduled to commence at the Blue Poles prospect at Whiteheads and the Mulga Bill Prospect at Side Well in the second half of March.