Spectrum raises dollars for Penny West gold exploration

SPECTRUM Metals has cashed-in on its gold exploration success at the Penny West prospect in Western Australia by raising A$5 million in new equity.
Spectrum raises dollars for Penny West gold exploration Spectrum raises dollars for Penny West gold exploration Spectrum raises dollars for Penny West gold exploration Spectrum raises dollars for Penny West gold exploration Spectrum raises dollars for Penny West gold exploration

'There's gold under them thar waters' ... Penny West, Western Australia

The company is issuing new shares priced at 2.4c each to undisclosed investors, with that price a 14% discount to the last trade before the stock went into a trading halt.

However the price represents a sixfold increase over the low of the past 52 weeks.

Market interest in Spectrum has come after new management completed the acquisition of Penny West in December and reported high-grade success last month in the first drilling campaign.

Penny West was briefly mined as an open cut in the early 1990s, yielding 121,000 tonnes at 21.8 grams per tonne for 85,000 ounces.

Its located 30km south of the Youanmi mining area that's currently being acquired by Rox Resources and Venus Metals, with the former likely to become the major partner if a mining venture can be identified.

Spectrum is run by geologist and Perth-based former analyst Paul Adams, while Rox's new CEO is geologist and Perth-based former analyst Alex Passmore.

Shares in Spectrum last traded at 2.7c, capitalising the company at $28.5 milllon.