Great Western Mining raises £0.45m to advance Olympic project

The AIM-traded firm said it was also granting 225,000,000 warrants based on a ratio of one warrant for every two placing shares, together with a further 27,000,000 warrants to be granted to Novum Securities as broker.

It said each placing warrant carried the right to subscribe for one new share at a price of 0.20p each for two years, while each broker warrant carried the right to subscribe for one new share at a price of 0.1p each, also for two years.

Together with its existing funds, Great Western said the proceeds of the placing would allow further work on the Olympic Gold Project, where a ground magnetic survey was planned to define an initial drilling target.

Work would be focused on the Olympic vein to the east and south of the OMCO fault, as well as assessment of the Cosmos vein potential.

The company said that, between 1917 and 1942, the shallow underground OMCO mine on the property produced around 30,000 ounces of gold and 34,000 ounces of silver from 35,000 tonnes of material, at grades of 25 grams of gold and 30 grams of silver per tonne.

Successfully identifying an extension to the mined vein on the other side of the fault, where the firm said it believed there was potential for precious metal mineralisation, would provide the company with a “significant” development opportunity.

The board said the funds would also be used to accelerate the proposed 2020 work programme on its existing mineral properties in Nevada, for seeking out new ventures, and for general working capital purposes.

“This placing of new shares will provide the means to do much more work on its gold and silver prospects, both on the recently-acquired Olympic Gold Project and on its Mineral Jackpot and RH Group prospects,” said executive chairman Brian Hall.

“At the Olympic Gold Project, the focus will be on the OMCO mine extension prospect, where the company believes there is considerable exciting potential for precious metal mineralisation to the east of the OMCO fault from the possible continuation of a previously-produced vein.”

At 1200 BST, shares in Great Western Mining Corporation were down 24.46% at 0.098p.