Octava Minerals (ASX: OCT) has tapped the market for $1 million in a bid to expand the antimony prospect within its Yallalong project that sits some 220km to the north-east of the port town of Geraldton in Western Australia.
Management says it now has plans for both extensional and infill drilling at its Discovery prospect and in a further show of support, company directors have also agreed to stump up $150,000 to provide a cash boost that will bolster the funds required for planned exploration programs.
Octava has received firm commitments from sophisticated investors to raise the $1 million through the issuing of about 11.8 million shares, priced at 8.5 cents.
Company chairman Clayton Dodd, non-executive director Damon O’Meara and managing director Bevan Wakelam have indicated they intend to subscribe for shares to a total combined value of $150,000, subject to shareholder approval at an upcoming general meeting. Once received, the funds will increase its working capital to beyond $2 million.
The funds are planned to enable infill drilling of the area where high-grade intercepts were discovered, in addition to drilling below the oxide zone to test bedrock targets, obtaining heritage clearance to undertake further works, completing field work and geophysical surveys across the site and for general working capital purposes.
The company intends to ratchet up its field activities to refine the position of the maiden holes to be drilled and adds it is awaiting approval for a program of works (PoW) so it can roll up its sleeves and get cranking.
Yallalong has some of the highest antimony grades recorded in Australia. The excellent grades and opportunity at Yallalong together with the current antimony (Sb) price outlook provide an encouraging scenario for the Company’s exploration plans and the potential for growth in shareholder value.
Octava Minerals CEO Bevan Wakelam
The company recently featured in Bulls N’ Bears’ weekly Runners of the Week column after it revealed high-grade antimony in historic drill intercepts at the site. Antimony finds have caused a host of manic share price runs recently – even for firms which have revealed even only a sniff of the lustrous grey metal – on the back of China’s decision to impose export controls on the valuable mineral last month.
Octava disclosed that drilling conducted in 2015 and 2016 at its Discovery prospect returned several solid numbers including 3m at 6.83 per cent antimony from 21m that featured a 1m slice at an impressive 13.6 per cent from 22m. Further hits showed 7m going 3.27 per cent antimony from 12m including 1m at 11.5 per cent from 18m and a stretch of 6m at 1.35 per cent from 13m.
The high-grade mineralisation remains open in several directions, with previous drilling only focusing on shallow oxide material.
Management says an earlier soil and rock-chip program identified a 10km north-to-south mineralised corridor that included one quartz vein sample assaying a whopping 60.1 per cent antimony.
Market punters piled into the shares after the announcement to send it to a 12-month high of 14c, returning a stellar gain of 180 per cent during the week of the reveal. Trading volumes were crazy compared to the stock’s usual numbers, hitting 24 million on the day the market was alerted to the high antimony grades.
So, the company could find itself sitting on an antimony winner if the drilling results return further strong mineralised intercepts.
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