Investigator Resources (ASX: IVR) has successfully completed a hefty $15 million capital raising with strong support from investors, which includes major shareholder CITIC Australia, to advance towards the delivery of a maiden Resource for the near surface, high grade Paris silver prospect.
The company previously completed a placement of 35.3 million shares at $0.18 each to institutional and sophisticated investors which raised $6.4 million of the total.
Major shareholder, CITIC Australia, participated in the placement and committed to subscribe for its full entitlement and any additional shares, increasing its holding to a maximum of 19.99%.
The subsequent one for six non-renounceable rights issue to raise the remaining $8.6 million has now been completed, with applications received for around 44% of the available shares and totalling $3.8 million.
Lead managers to the issue, Ord Minnett and Octa Phillip, placed the remaining $4.8 million to a number of international and domestic institutions and sophisticated and professional investors.
John Anderson, managing director of Investigator Resources, said the result was very pleasing as it underpinned the ongoing drilling of the potentially shallow and high grade Paris silver prospect near Kimba in South Australia.
"Our strong cash position will also be applied to our pipeline of quality greenfields targets for silver, gold and copper across Eyre and Yorke Peninsulas.
"We thank our investors for their support of our successful approach towards discovering fresh mineral resources and welcome a number of new investment groups on board Investigator."
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
Investigator continues to deliver stellar high grade results from its Paris silver prospect on South Australia's Eyre Peninsula, where the company is anticipating an initial resource in December 2012.
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.
Last month the company identified a priority target at the Paris silver prospect in South Australia's Eyre Peninsula, following a PQ diamond drilling program.
Drilling at Paris has returned a number of core intersections of interpreted mineralised feeders below previous near surface silver intersections.
Investigator has also completed large diameter diamond drilling on selected prior silver intersections, with the aim of gathering geological information.
Visible native silver has been identified in one of the re-drilled intersections, within the weathered zone.
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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