CAPITAL MARKETS

PVW cashes up for big rare earths exploration campaign

RECENT investors in rare earths explorer PVW Resources are suffering from they would expect will be short term ‘paper’ pain as the junior confirmed today it had completed a A$9.5 million raising priced at levels more than 30% above the current share price.

Michael Quinn

PVW in the Tanami

The company got commitments from investors to pay 40c per share back in April, with stock now at levels around 30c.

PVW was planning to drill 10,000m of RC along with 25,000m of aircore targeting the 18km unconformity trend from Watts Rise to the Killi Killi East in the Tanami region.

The 3km long Killi Killi East target was to be first on the drilling agenda with chips, soil samples, mapping, airborne surveys and structural interpretation undertaken last year.

PVW said "a large number of samples were collected with over 1% TREO results and up to 12.45% TREO (while) significant gold results were also present including 8.94 grams per tonne gold and 4pt gold).

Funds raised will also be used for exploration vehicles, portable XRFs, site transportable office and other general exploration equipment required.

On a negative day for the ASX, shares in PVW were down 3% to 30c in morning trade, capitalising the company at $27.2 million.