4941e566-2f1a-4861-84fe-b44184c056a2.pdf
EXTERRA RAISES AN ADDITIONAL A$0.5M TO RAMP UP EXPLORATION FOR GOLD AND LITHIUM
Exterra Resources Limited
ACN 138 222 705
ASX Code: EXC
www.exterraresources.com.au Issued Capital:
Ordinary Shares: 225m
Options: 24.4m
Cash (31 Dec 2015): $364,000
Directors and Management: John Davis
Managing Director
Justin Brown
Non-Executive Director
Peter Cole
Non-Executive Director
Dennis Wilkins
Company Secretary
26 April 2016
Exterra Resources Limited ("Exterra" or "the Company") (ASX:EXC) is pleased to advise that it has received commitments from professional and sophisticated investors including a well-‐known small cap resources fund out of Sydney, to raise an additional A$0.5 million.
Funds will be used to accelerate exploration on the Linden Gold Project and the Moolyella Lithium Project, in parallel with the Exterra/Pybar joint development of the Second Fortune gold mine.
Brokers to the placement Taylor Collison Ltd have advised that the placement was heavily oversubscribed.
SUMMARY:
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Successful placement to new investors to raise A$0.5 million by the issue of 12,500,00 ordinary fully paid shares (Placement Shares) at
$0.04 per share with a one (1) for four (4) attaching option with an exercise price of A$0.06 per option and a twelve month term.
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Funds raised from the Placement will be used to accelerate exploration on the Linden Project, including the Golden Orb prospect, the Moolyella Lithium project and other regional gold projects.
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Taylor Collison Ltd Sydney is broker to the Offer.
Exterra's Managing Director John Davis said: "We are very pleased with this successful placement and the support shown by our new shareholders to our register. This funding allows Exterra to ramp up exploration drilling at the Linden project at the exciting Golden Orb prospect, in parallel with the Pybar/Exterra joint development of the Second Fortune gold mine, and to accelerate ground activities on the Moolyella Lithium project in the Pilbara region of WA.
These activities position Exterra to provide ongoing updates on a number of exploration and development initiatives as we move forward."
The Placement of the shares is not subject to shareholder approval and will fall within the Company's 25% placement capacity under ASX LR 7.1. The Placement of the options is subject to shareholder approval at the next meeting of shareholders, date to be advised.
Taylor Collison will receive a Placement Fee of 5% on the Placement Amount and will be issued with 2 million, 1 year options exercisable at A$0.06, subject to the full Placement Amount being raised.
GOLD EXPLORATION STRATEGY
The results from the Golden Orb prospect, summarised on Figure 1 below, from the Exterra December 2015 Quarter Activities report, confirm follow-‐up drilling is required at a number of locations and also confirms the Golden Orb Prospect represents a potential new discovery and a new priority target amongst a growing regional portfolio of targets within this under explored Linden project.
Drilling at the Golden Orb Prospect represents the first ever drilling into this target. The target was first delineated as a surface geochemical anomaly. The average vertical depth of drilling is approximately 20 metres and due to the sparse, shallow nature of the programme, the target is considered open in all directions (see Figure 1). The Prospect, along with the remaining area of the Linden Project (Figure 2), occurs within the prolific Laverton Tectonic Zone. To date this has a gold endowment of in excess of 25M ounces of gold from numerous deposits including Wallaby, Sunrise Dam, Granny Smith, Red October and Mt Morgans. (Figure 3)
LITHIUM EXPLORATION STRATEGY
As released to the market earlier this Quarter12, Exterra has secured an option over the Moolyella Lithium Project. As outlined, the Moolyella Project has a history of Tin (Sn) and Tantalum (Ta) production from mineralised pegmatites from 1898 until 1986 with no systematic Lithium (Li) exploration having been carried out.
Exterra has commenced a review of the project which confirmed reconnaissance rock chip sampling during 2011/12 over an area of 2 sq km recorded the presence of highly anomalous Li in a significant number of samples analysed. At a cut off of 0.1% Li2O, 39 samples distributed over a broad geographical area reported above 0.1% Li2O.
Best results include:
Sample ID 3004587 1.82% Li2O
Sample ID 3004651 0.59% Li2O
Sample ID 3004663 0.52% Li2O
Sample ID 3004688 0.63% Li2O
These results further confirm the potential of the Moolyella Lithium project to host significant Lithium bearing pegmatites. Historic data also reveal that a number of drillholes were completed at Moolyella by previous workers, with assays not undertaken for Lithium. A field visit has confirmed that the drill spoils are still on site and Exterra is currently planning a programme to resample the cuttings for lithium assays, in conjunction with further mapping and rock chip sampling to generate lithium targets for drill testing.
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http://www.exterraresources.com.au/images/uploads/EXC_11_05_Moolyella_Project_Update_FINAL_20160323.pdf
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http://www.exterraresources.com.au/images/uploads/Moolyella_ASX_Release_Feb_2016.pdf
Figure 1: Golden Orb Prospect, collar locations and selected assays over aeromagnetics
Figure 2: Linden AC Drill Hole Locations