Strategic Minerals receives access to funding amid takeover bid
Summary: Shares are up over 40% over the past three months, last priced at $0.40.....
Strategic Minerals Corporation NL has been given vital access to funding thanks to a $1 million interest-free loan facility provided by director Christopher Wallin.
The loan provides urgent access to short-term funding allowing the company to progress exploration and evaluation initiatives arising from the 2017 campaign.
Takeover bid by QGold Pty Ltd
Strategic Minerals is the subject of an on-market takeover bid by QGold Pty Ltd.
On 4 December 2017, QGold made an unconditional on-market cash offer to acquire all the ordinary shares in Strategic Minerals that it does not already own for $0.40 cash per share.
Given the on-market takeover bid made by QGold, the company has been unable to raise capital through undertaking a placement.
Furthermore, given the urgent need for capital, a rights issue, which is a much longer process, would potentially be too slow.
Objective to take Woolgar into gold production
Strategic's core objective is to become a significant gold producer through mine development at its 100%-owned and managed Woolgar Project in central northern Queensland.
The project includes all mining titles and exploration permits and is in an area of high gold endowment.
Several multi-million ounce gold deposits have been developed in the region over a number of years.
The project hosts multiple gold resources in several styles of mineralisation, including epithermal and mesothermal vein-hosted, and intrusive related gold systems.
Strategic recently updated the resource for the Big Vein South gold deposit at Woolgar.
The Big Vein South resource has increased 76% to 18.4 million tonnes at 2 g/t gold, containing 1.17 million ounces at 0.75 g/t.
This represents a 79% increase in tonnes from the November 2015 estimate with a 2% drop in grade and a 76% increase in the number of ounces.
The resource update incorporates the 2016 drill program that tested several areas of the previously announced exploration target, principally in and around the Central zone.
There is substantial potential to delineate additional resources, with an exploration target of 8-12 million tonnes at 1.8-2.1 g/t for 0.45-0.65 million ounces.