Investigator Resources (ASX: IVR) has already secured A$6.4 million of a proposed $15 million capital raising to fund continued Resource definition drilling at its Paris silver prospect on South Australia's Eyre Peninsula.
Demonstrating the strong investor backing Investigator continues to receive, the company has already completed a placement of 35.3 million shares at $0.18 each to institutional and sophisticated investors.
Major shareholder, CITIC Australia, participated in the placement and has committed to subscribe for its full entitlement and any additional shares, increasing its holding to a maximum of 19.99%.
The company plans to add a further $8.6 million to this with a non-renounceable one for six offer of 48 million shares at $0.18 each to existing shareholders.
With the funds raised and the company's existing cash position of around $6 million as of the end of the March quarter, Investigator will have more than enough cash to not only advance a maiden Resource, and metallurgical and environmental studies at Paris, it will also be able to undertake further drilling on its Peterlumbo satellite targets around Paris and other regional targets on the Eyre and Yorke Peninsulas.
High grade silver
Last month Investigator uncovered the first of the mineralised feeder structures at Paris which indicates a 3 to 7 metre wide vertical structure assaying over 400g/t silver.
Importantly, this discovery offers depth extensions for high grade silver mineralisation with increasing gold credits already evident in some of the intersections.
Recent assay highlights include 7 metres at 1,810g/t silver from 31 metres, 10 metres at 432g/t silver from 49 metres and 19 metres at 965g/t silver from 42 metres.
Investigator is now anticipating an initial resource for Paris in December 2012.
Adding graphite to the mix
Adding extra spice to the exploration equation is the regional graphite potential with widespread hits recorded in historic drill data, including a substantial shallow intersection of 15 metres at 12% total graphitic carbon at the Barna Hill tenement.
A preliminary review of the graphite potential within Investigator's regional tenements has identified several areas with good potential where graphitic schists were intersected in past drilling.
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