Nexus Minerals (ASX:NXM) is confident of the progress at its Wallbrook Gold Project in Western Australia on the back of a fresh $5 million capital raise and ongoing positive drill results.
The company, which last week closed a $5 million placement, is buoyed by the commitment and confidence of shareholders when it rattled the tin amid global economic uncertainty. Nexus will use the funds raise to advance drilling at the Crusader-Templar prospect and other regional exploration activities within the wider Wallbrook project.
Speaking to Mining.com.au ahead of the of the International Mining and Resources Conference (IMARC) in Sydney in November where the company will showcase its assets, Managing Director Andy Tudor noted it is very challenging to raise money at the moment.
“I think the market understands that Nexus has grown from greenfields gold explorer to be on the cusp of a step change in the company with the recent positive results received from the large RC and DDH drill programs at the Wallbrook Gold Project.
“The company aims to have a maiden Mineral Resource Estimate (MRE) completed in Q1 next year at the Crusader-Templar Prospect”
The company aims to have a maiden Mineral Resource Estimate (MRE) completed in Q1 next year at the Crusader-Templar Prospect, and this, in conjunction with the regional drill success at the Branches Prospect supports our belief in the project to host a significant gold camp.”
The placement, which issued new fully paid ordinary shares at $0.18 per share via a single tranche to corporate, professional, sophisticated, and institutional investors, included commitments by shareholder Northern Star Resources (ASX:NST). The mining major, which has a market capitalisation of $8.93 billion, was to increase its shareholding to 4.95% (from 2.27%) in Nexus as a result of participating, which Tudor noted is a “very positive” sign for Nexus.
“With our Wallbrook tenure intertwined with their (Northern Star’s) porphyry mining centre tenure, it certainly shows their confidence in the Nexus assets and our ongoing exploration success in the region.”
Euroz Hartleys acted as lead managers and bookrunner to the placement.
Nexus will now deploy the capital to continue working with company consultants to complete the geology and mineralisation model component of the MRE. This will guide the next phase of reverse circulation (RC) drilling to be undertaken in the December quarter at Crusader-Templar to increase the mineralisation envelope.
Tudor notes: “Additionally, we have been planning a regional exploration aircore drill strategy to start exploring other mineralised corridors across the broader Wallbrook project. So, plenty of RC and aircore drilling to commence this month, with results to follow.”
Next month, Nexus will attend and showcase its portfolio at IMARC in Sydney, which the MD said is an important event on the company’s calendar.
“Nexus attends and presents at only a select number of conferences during the year. With the company’s exploration efforts being recognised by our peers and the market generally, it is imperative to be able to present the company’s activities to a willing audience.”
Nexus is actively exploring for gold deposits on its highly prospective tenement package in the Eastern Goldfields of Western Australia. In addition the company has recently expanded its existing project portfolio with the addition of the Bethanga Porphyry Copper-Gold project in Victoria.
The company reports that in Western Australia, the consolidation of the highly prospective Wallbrook Gold Project by the amalgamation of existing Nexus tenements with others acquired, will advance these gold exploration efforts.
Write to Adam Orlando at Mining.com.au
Images: Nexus Minerals Ltd