Echo raises funds for exploration

PERTH (miningweekly.com) – Gold developer Echo Resources has raised A$3.2-million in a share placement to fund exploration work at its assets in the Yandal gold belt, in Western Australia.

The miner on Friday said that some 20-million shares were placed with institutional and sophisticated investors, priced at 16c a share, to raise the funds. The issue price represented a 6% discount to Echo’s last trading price.

“We are very pleased to see the excellent support for both the placement and Echo’s strategy to grow our gold reserves in advance of a decision to mine,” said CEO Simon Coxhell.

“Our exploration activities will have a particular focus on extending the existing resource and reserve base at Julius, as well as drilling out a number of high priority targets, including Orelia and the broader Empire district.”

Echo has an existing gold resource of some 956 000 oz across its Yandal tenements, and a bankable feasibility study at the Julius deposit has estimated that the project could produce some 63 965 oz of gold over a mine life of less than two years.