Breaker raises $20M

Gold explorer Breaker Resources has received binding commitments for a placement to raise A$20 million (reports MiningNews).
31st July 2020
Resources Rising Stars

Gold explorer Breaker Resources has received binding commitments for a placement to raise A$20 million (reports MiningNews).

Shares will be issued at 24c per share, a 7.7% discount to the five-day volume-weighted average price.

The placement will be conducted in two tranches, with shareholder approval required for the second tranche.

Breaker major shareholder Electrum Strategic Opportunities Fund II will invest up to $2.28 million to maintain its 9.95% stake.

Paulson & Co will also join the register and will also hold 9.95%.

Breaker will conduct a share purchase plan at the same price to raise a further $3 million.

Canaccord Genuity is the lead manager to both issues.

Breaker executive chairman Tom Sanders said the support from US funds was a vote of confidence in the potential of the company's Lake Roe gold project.

"After 250,000m of reverse circulation and diamond drilling, the results point to a rare large greenfields gold camp in the early stages of delineation, only 100km from Kalgoorlie," he said.

"This is highly unusual, and we own 100% of the project with 600sq.km of tenure, a granted mining lease and 40km of strike potential."

Breaker reported a June 30 cash balance of $3.6 million.

The company's last capital raising was an $8 million placement at 35c per share to Electrum late last year.

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