Eastern Goldfields takes stake in Windward

PERTH (miningweekly.com) – ASX-listed Eastern Goldfields has taken a 14.3% stake in fellow-listed Windward Resources in a deal valued at A$2.1-million.

Subject to Windward shareholder approval, Eastern Goldfields will take up 18-million shares in Windward, priced at 12c each. Eastern Goldfields will also be issued with a further 18-million unlisted options, in two tranches, exerciseable at premiums of 125% and 166% respectively, to the subscription price.

Eastern Goldfields' Michael Fotios said on Thursday that the Windward investment represented a strategic opportunity to diversify into one of the world’s premier emerging nickel provinces.

“We share the view of many analysts that the nickel sector is extremely well-placed for a strong recovery over the next 12 to 18 months, and we are already beginning to see evidence that this recovery is under way.”

Windward executive chairperson Bronwyn Barnes said that the investment by Eastern Goldfields was an outstanding opportunity for the company, as it would now have the financial capability required to target world-class nickel/copper and gold deposits in the Fraser Range.

Following the placement, Windward would also launch a nonrenounceable pro rata entitlement offer, under which it would raise up to A$3.8-million. The entitlement offer would be undertaken on a one-for-four basis at an issue price equivalent to the subscription price, while free attaching options equivalent to those issued to Eastern Goldfields, would also be issued.

“Following the completion of the placement and entitlement offer, Windward will have cash reserves of more than A$10-million, plus access to ongoing funding through its relationship with Eastern Goldfields.

“This will give it the financial firepower to prosecute the sort of wide-ranging and deep-penetrating exploration campaign required to unearth more Nova-Bollinger-style discoveries,” said Barnes.