Ilgarari Drilling Funded: Can Lord Resources Deliver on Copper Potential?
Lord Resources has successfully raised $1.39 million through a shortfall placement, setting the stage for imminent drilling at its high-grade Ilgarari Copper Project in Western Australia.
- Completed shortfall placement of 45.8 million shares at $0.018 each
- Total capital raised approximately $1.39 million before costs
- Funds earmarked for exploration and maiden drilling at Ilgarari Copper Project
- 708 Capital appointed as lead manager, receiving fees and options
- Ilgarari project fully permitted and drilling expected to commence soon
Capital Raise Completes Successfully
Lord Resources Limited (ASX – LRD) has closed its shortfall placement, issuing 45.8 million new shares at 1.8 cents each, contributing to a total of 77.4 million shares issued under its recent entitlement offer. This capital raising effort has generated approximately $1.39 million before costs, providing the company with fresh funds to advance its exploration ambitions.
Focus on Ilgarari Copper Project
The newly raised funds are earmarked primarily for exploration activities at the Ilgarari Copper Project, located about 110 kilometres south of Newman in Western Australia. The project, noted for its high-grade copper potential, is now fully permitted and cleared for drilling. Lord Resources is preparing to commence its maiden drilling program imminently, a critical step in validating the project's resource potential.
Strategic Partnership with 708 Capital
To manage the shortfall offer, Lord Resources appointed 708 Capital Pty Ltd as lead manager. In return, 708 Capital will receive a 6% fee and has subscribed for 2.5 million options exercisable at 3 cents each, expiring in 2030. This arrangement aligns interests and provides additional incentive for 708 Capital to support the company’s growth trajectory.
Market Context and Company Outlook
Chairman Paul Lloyd expressed enthusiasm about the drilling commencement, highlighting the recent positive re-rating in the copper sector globally. The successful capital raise not only strengthens Lord Resources’ balance sheet but also signals confidence from both existing and new shareholders. CEO Andrew Taylor and the board are now focused on delivering exploration results that could unlock significant value for investors.
Next Steps for Investors
With drilling set to begin shortly, the market will be watching closely for assay results and any indications of resource expansion. The company’s ability to convert exploration success into tangible project milestones will be pivotal in shaping its near-term valuation and investor sentiment.
Bottom Line?
Lord Resources’ fresh capital injection primes the Ilgarari project for a pivotal drilling phase that could reshape its copper prospects.
Questions in the middle?
- What are the expected timelines and budget details for the upcoming drilling program?
- How might the issuance of options to 708 Capital affect future share dilution?
- What initial exploration targets will the maiden drilling focus on at Ilgarari?
