Great Western Mining has raised £500,000, before expenses, through a placing of 125,000,000 new ordinary shares at 0.4p apiece and announced a potential drilling target zone. The placing was conducted by Beaufort Securities Limited.
The net proceeds of the placing will provide the company with additional working capital to fund its pre-development activities on the M2 copper-gold target, and to initiate joint development work on M1 with Crown Point Gold & Silver Mining LLC under the terms of the Huntoon mine area cooperation agreement recently signed with Crown Point.
Warrants to subscribe for 12,500,000 new ordinary shares at 0.5p per ordinary share, exercisable within 5 years from the date of admission of the placing shares, have been issued to Beaufort in connection with the Placing.
During the spring and early summer of 2016, the Great Western Mining field team conducted a second soil and rock chip sampling programme on M1 to consolidate the very encouraging results of the previous year.
The programme has taken a total of 215 soil samples at 40 metre intervals, and 70 randomly selected rock samples, and sent these to Bureau Veritas, Reno for analysis.
The sampling programmes have been designed by Dr Tom Molyneux, GWM's geological advisor, in order to determine the existence of a mineralised zone below the NE-SW trending magnetic anomaly identified in previous aero-magnetics and ASTER satellite surveys carried out by the company.
The programme has revealed widespread anomalous mineralisation. In particular, Gold seems to constitute a geochemical anomaly, with sample readings above 240 ppb Au, spanning two separate soil grid lines, approximately 350 metres apart.
Anomalous readings of Silver, 1383 and 1986 ppm Ag, and Lead, 4434 ppm Pb, have also been found in these locations. The Company views this area as a potential drilling target zone.
At 9:23am: (LON:GWMO) Great Western Mining Corporation PLC share price was -0.01p at 0.48p