Gateway raises to accelerate work at Gidgee

FOLLOWING recent exploration success, Gateway Mining has raised A$6 million in an oversubscribed placement.
Gateway raises to accelerate work at Gidgee Gateway raises to accelerate work at Gidgee Gateway raises to accelerate work at Gidgee Gateway raises to accelerate work at Gidgee Gateway raises to accelerate work at Gidgee

Drilling at Gidgee in WA's Goldfields

The company is issuing 352.9 million shares at 1.7c per share, a 6% discount to the last closing price.

Every two shares will come with a free-attaching option, exercisable at 3c before mid-December 2024.

Gateway directors Mark Cossom, Trent Franklin and Scott Brown has agreed to subscribe for $272,625 of new shares, subject to shareholder approval.

Largest shareholder Kerry Harmanis, who holds 12.3%, will also participate.

Enrizen Capital and JP Equities managed the placement, which comes off the back of exploration success at the Gidgee gold project in Western Australia.

"The proceeds will strengthen our treasury position to over $9 million in cash and listed shares, putting us in an exceptionally strong position move through into 2022," Gateway managing director Mark Cossom said.

"Our aim is to build on the significant exploration success we have achieved over the past two years at Gidgee and maintain strong momentum moving forward."

Gidgee has a resource of 240,000 ounces at 2.2 grams per tonne gold, but Gateway expects to report a "significant" upgrade in December.

Recent drilling at the Julias prospect, outside the resource, returned 13m at 4gpt gold and 1m at 8.6gpt gold in a new shallow oxide zone.

"In parallel, we will resume drilling to test some of the exciting new targets we have announced recently, such as the Julias prospect, to build our growth pipeline for further resource growth into next year and beyond," Cossom said.

"With a strengthened balance sheet and clear vision for how we plan to move Gidgee to the next level as an emerging mid-tier gold asset, this is a very exciting time for Gateway."

Gateway shares closed at 1.8c yesterday, valuing the company at $34.2 million.