Breaker Resources NL said Sept. 29 that it has received binding commitments from institutional and sophisticated investors for a capital raising of A$12.4 million through a share placement at 50 cents apiece.
The capital raising was heavily oversubscribed due to an overwhelming demand from institutional investors.
Proceeds will be used to undertake resource definition drilling and other exploratory works at the company's Lake Roe gold project in Western Australia.
So far, the company has made two separate gold discoveries, namely Bombora and Bombora North, and has identified wide, high-grade near-surface gold mineralization over 1.6 kilometers of a potential 4.4-kilometer strike length.
The resource definition drilling is planned to start in about eight weeks, subject to regulatory approvals.
In addition, reverse circulation drilling is underway at the project to define prioritizing targets at the southern 2.2 kilometers in preparation for resource definition drilling.
Breaker plans to source a second reverse circulation drill rig to start testing the 2.2 kilometers-long zone to the north of the Bombora North prospect within the next two weeks.