Zenith Minerals Limited (ASX:ZNC) Completes A$3.5M Rights Issue
Rights Issue Completion
Zenith Minerals Limited has successfully completed a fully underwritten non-renounceable entitlement offer, raising approximately A$3.5 million before costs to accelerate exploration drilling and gold resource growth initiatives.
Updated Dulcie Far North Resource
The company’s updated JORC Inferred Mineral Resource Estimate at the Dulcie Far North Project increased total resources by 41% to 8.2Mt at 1.15g/t Au, containing 302,000oz of gold.
Exploration and Drilling Plans
Zenith plans a 9,000-12,000m RC drilling campaign at the Consolidated Dulcie Gold Project and is mobilising for a deep diamond drilling campaign at the Red Mountain Gold Project in Queensland to evaluate potential large-scale gold mineralisation.
Financial Position
The proceeds from the Rights Issue, along with a recent Turkish asset sale and Queensland exploration grant funding, position Zenith well to pursue a higher tempo of exploration activity in FY25/26, aiming to grow the Mineral Resource Estimate and progress towards potential production.
Executive Comments
Andrew Smith, Managing Director, stated, “This funding places Zenith in a strong financial position to rapidly advance exploration and resource growth at our consolidated Dulcie Gold Project, where granted Mining Leases and existing active surface operations significantly de-risk the project and provide a potential accelerated pathway to future gold production. Additionally, we will initiate targeted deep diamond drilling at our highly prospective Red Mountain Gold Project in Queensland, testing for large-scale gold and copper-gold porphyry systems. We are excited to deliver these significant exploration milestones and remain committed to creating substantial value for our shareholders. The planned exploration activity across the portfolio will expose shareholders to a mix of low risk MRE growth and genuine BlueSky optionality.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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