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  4. Mila Resources raises funding to support Kathleen Valley Gold project

Mila Resources raises funding to support Kathleen Valley Gold project

Published by , Editorial Assistant
Global Mining Review,

Mila Resources Plc, the post-discovery gold exploration accelerator, has announced that it has raised approximately £696 000 (before expenses) through a placing of 23 199 984 new ordinary shares of £0.01 each (placing shares) at a price of £0.03 per placing share (placing). Investors in the placing will also receive one warrant per share to subscribe for one new ordinary share at a cost of £0.048 per share (investor warrants). The company has also issued 524 000 broker warrants that are exercisable at £0.03 for a period of 3 years (broker warrants).

The investor warrants and broker warrants are conditional on the publication of a prospectus by the company, which it anticipates filing as soon as practicable, and shareholder approval to increase the company’s share authorities.

Use of Funds

The proceeds of the placing will be used to continue exploration activity at the Kathleen Valley Gold project in Western Australia, following a highly successful stage one drilling campaign, and further encouraging preliminary results from stage two drilling. Drilling to date has focussed on the Coffey Deposit, which has returned highly promising intersections including 6.6 m @ 14.86 g/t Au & 21.79 g/t Ag from 209.40 m, including 1 m @ 27.60 g/t Au & 47.50 g/t Ag from 211 m.

In particular, the funds raised will be used to complete a further 2400 m of drilling (comprising 2000 m reverse circulation and 400 m of diamond drilling) in addition to environmental and heritage works, and for general working capital. These activities are expected to support the company’s resource expansion objectives, drilling along strike at depth and also infill drilling, with the intention of publishing an updated and enlarged JORC resource statement following completion of stage three drilling.

Mark Stephenson, Executive Chairman of Mila commented:

“Following a highly successful stage one campaign, followed swiftly by a second phase of drilling which looks set to be equally positive, the Mila team are keen to keep exploration momentum up at our Kathleen Valley Gold project. We are confident that the Coffey Deposit, where activity is currently focussed, has all of the geological signatures of a robust gold resource. As a result, we are delighted that investors have supported us in this capital raise to keep up this work programme as we look to reveal the full potential of this project.

“Our exploration team are extremely enthusiastic about our prospects at Coffey, and indeed, about the wider potential of the Kathleen Valley Gold project, and we look forward to providing further results from our stage two campaign and our plans for stage three.

Read the article online at: https://www.globalminingreview.com/mining/06102022/mila-resources-raises-funding-to-support-kathleen-valley-gold-project/

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Australian mining news Gold mining news