Echo to raise $5m for gold project

Gold explorer Echo Resources has tapped investors for $5 million to fund ongoing development of its Yandal project near Wiluna.

Perth-based Echo will raise $4 million from investors through the placement of 40 million shares at 10 cents each, and plans to accept $1 million in oversubscriptions.

The price of the raising represents at 16.5 per cent discount to the company’s 30-day volume-weighted average price.

The proceeds from the raising will be used to fund exploration work at its tenements across the Yandal project, which encompasses the 2 million tonnes per annum Bronzewing processing plant which the company acquired last year as part of its merger with Metaliko Resources.

Argonaut is acting as lead manager to the raising.

Echo shares entered a trading halt this morning, and were last worth 11.5 cents each.

More to come