Alloy Resources Limited (ASX:AYR) has received firm commitments from professional and sophisticated investors to raise about $1.15 million via a placement of shares at 0.8 cents each.
The funds will be used for exploration programs including infill and extension soil sampling at the Ophara Cobalt project in the Broken Hill region of New South Wales.
Alloy will also carry out drilling and surface geochemical surveys at the Horse Well Gold project in the Warburton Mineral Field of Western Australia.
Large cobalt targets at Ophara
The company recently identified extensive new cobalt mineralisation trends by soil sampling over a 60-square kilometre area at the Ophara Project.
Alloy executive chairman Andy Viner said: “We are very happy to say that it looks like the cobalt-gold mineralisation that outcropped at Great Goulburn is continuing under the soil cover over an extensive area.
“We believe there are extensions and repetitions of the mineralisation and infill sampling will quickly define new drill targets.”
Follow up aircore drilling program at Ophara
Viner added: “Just as importantly the anomalies are not closed off and we have large areas of the project that now justify first pass soil sampling and there is a good chance we will locate more areas of mineralisation.”
Alloy is planning to use some of the new funds towards a planned follow-up aircore drilling program at Ophara.