ASX-listed mineral explorer Great Boulder Resources has secured binding commitments to raise A$4.5m ($2.9m) in a placement to support the expansion of its flagship Side Well gold project in Australia.

As part of the placement, Great Boulder will issue 90 million new shares at A$0.05 apiece.

The placement is being developed by institutional investor Collins St Asset Management, which has committed to acquiring 41 million shares for A$2.05m.

The company also secured support from major current shareholders Zebina Minerals and Lion Selection Group.

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By GlobalData

Proceeds from the placement along with its existing cash reserves will help Great Boulder begin resource growth exploration and new discovery drilling at the Side Well project.

The project is located next to the town of Meekatharra in Western Australia and covers an area of 132km².

Considered to be a high-grade gold project, it is said to host 668 kilo-ounces (koz) of resources at 2.8 grams per tonne gold (Au).  

Mulga Bill is a main priority target at Side Well. Gold mineralisation is spread over a 6km-long area and the company claims it has million-ounce potential.

Great Boulder managing director Andrew Paterson said: “We are extremely pleased with the strong support from key shareholders and to welcome Collins St Asset Management as a material shareholder in the company. This successful capital raise in difficult market conditions is a strong validation of the Side Well project, the Great Boulder Team and the current strategy in place to maximise shareholder value.”

“Following our first drilling programme in August 2020, Side Well now has a high-grade resource of 668koz, providing a strong growth platform to prove the project’s multi-million-ounce potential. This placement positions the company with a strong balance sheet to accelerate exploration on high-priority regional discovery targets along the Ironbark Corridor, as well as advanced targets such as Mulga Bill North.”