Forrestania Resources (ASX:FRS) has called a $2.7m placement today to give it the first round of funds it needs to kick off lithium exploration at its Forrestania project in WA’s south-west.
Forrestania will issue 18m shares at 15c each for a total of $2.7m before costs; CPS Capital Group will receive 6% of funds.
Forrestania notes the 15c issue price is a 25% discount to the ten day average of 20c; shares issued will be broken up into two tranches, with a second lot to be confirmed at the company’s AGM in November. The company adds first commitments are already received.
This is unsurprising, given the battery metals fever currently gripping the market.
Forrestania won approvals to drill from the WA regulator back in June and has since been gearing up as it slogs through overhead compliance reports and other pre-work activities.
In July, the company flagged its discovery of pegmatite outcrops at the ‘Mousetraps’ prospect, part of the Forrestania project, located some 7km to the west of the larger ‘Bannon’ target.
The company had intended to commence drilling in September, but shareholders now find themselves waiting for more news in October.
In fourth quarter of this year, Forrestania notes it will commence lithium drilling at the following two targets:
South Iron Cap East
Also worth noting is that gold drilling will also kick off in the December quarter (all things going to plan) at the targets:
Gold drilling at the Lady Lila target starts early Q1 2023. Worth noting is that the company earlier this month secured a drilling contractor for the program of works.
“The funding allows the company to continue with exploration and focus on advancing our targets to drill testing,” Forrestania chief Angus Thomson said.
“This is an exciting time as we move towards the lithium program. Our ongoing soil sampling program continues to identify new areas to explore.”
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