West Coast Silver (ASX:WCE) issued a trading halt on Tuesday, one day after potential farm-in partner Falcon Metals (ASX:FAL) hit soil anomalies suggesting potential gold mineralisation on a licence held by WCE.
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Falcon has the right to earn up to 70%% interest in E09/2457, which Falcon is sniffing out for gold, the latest data towards that end the result of a soil sampling program.
Falcon is, for now, keen on the Olsen Well; part of West Coast’s Errabiddy Gold Project. That project has been held by the latter since it was known as Errawarra Resources.
What the capital raise does or doesn’t do for West Coast Silver shareholder sentiment remains to be seen. Raisings are well known to be divisive, to say the least. Particularly if they dilute shares.
That said, WCE shares popped +15% on Monday, to 15cps, on the back of news that wasn’t related to Falcon Metals and its potential to become a source of income itself for the former. Instead, silver rock chip samples were enough to send shares higher (albeit, on less than $300,000 worth of trades).
The capital WCE raises – shares are expected to resume trading on Thursday – will be used to focus on Elizabeth Hill, the company’s flagship silver play, and the company is aiming to do more than just collect rock chips.
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Future drilling is on the cards, as well as more surface sampling work and “completion of near mine and regional targeting works.”
How shareholders react, of course, remains to be seen.
WCE last traded at 15cps.
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