Local gold explorers Echo Resources and Kairos Minerals have raised a combined $22 million from investors to fund ongoing work at their respective projects in Western Australia.
Local gold explorers Echo Resources and Kairos Minerals have raised a combined $22 million from investors to fund ongoing work at their respective projects in Western Australia.
Echo announced today it had raised $15 million through the placement of 68.2 million shares at 22 cents each, representing a 3.7 per cent discount to its 10-day volume-weighted average price.
The proceeds will be used by the company to continue exploration work in the Yandal gold belt, with a focus on progressing a development pathway for its Bronzewing operation.
“This raising has allowed us to welcome a number of well-respected international and domestic institutions to the register and we thank them for their support,” Echo chief executive Simon Coxhell said.
“This raising gives us significant firepower for our systematic exploration activities as we explore for new gold deposits, build our quality reserve base and move closer to production.”
Canaccord Genuity was sole underwriter and book-runner to the raising, while Euroz Securities acted as joint lead manager. BW Equities acted as broker to the raising.
Meanwhile, Kairos has tapped investors for $7 million, through the placement of 127.3 million shares at 5.5 cents each, to continue exploration work at its Pilbara gold project.
Canada-based Sprott Capital Partners has subscribed for $5 million worth of the raising, while CPS Capital and Patersons Securities acted as joint lead managers and underwriters.
“This is a watershed moment for the company which confirms our position at the forefront of the new Pilbara gold rush,” Kairos chairman Terry Topping said.
“We are delighted to welcome Eric Sprott as a cornerstone shareholder and participant in this pivotal capital raising, which puts Kairos in an exceptionally strong position to pursue aggressive exploration programs across our key projects.
“Together with the expected proceeds from option conversions, the completion of this placement will increase our cash position to over $10 million.
“Kairos is in the fortunate position of having both an extensive and high-quality ground position which is highly prospective for conglomerate-hosted gold and an established 258,000oz JORC compliant resource base at a project in Mt York with an extensive mining history.
“Our strong position in the Pilbara, plus our highly prospective Roe Hills project adjacent to Breaker Resources’ emerging discovery, gives us the ability to capitalise on some exceptional growth opportunities in the Australian gold sector.”
Kairos shares were 14.2 per cent higher to 6.4 cents each at 11am, while Echo shares were 3.7 per cent lower to 25.5 cents each.
