News: Gold Road Resources raising $23M for major drilling in Yamarna Belt

Gold Road Resources (ASX:GOR) is raising $23.2 million via a oversubscribed 15% institutional placement of 77.3 million shares at $0.30.

GOR has been one of the precious few performing gold stocks over the past few years, and its ability to raise such a substantial amount of money is a function of this outperformance.

GOR will use proceeds for resource expansion and PFS drill out at its Gruyere Deposit in Western Australia; drill testing, metallurgy and modelling at the Toto Anomaly; and regional exploration at Dorothy Hills and North Yamarna.

The company boasts the 9th largest gold resource of any ASX-listed company with over 5 million ounces, and ownership of almost the entire Yamarna Belt with a 5,000 square kilometre tenement holding.

The company has identified more than 100 gold targets at Gruyere alone, and has attracted an exploration JV with Japanese giant Sumitomo Metal Mining over South Yamarna.

One of the more impressive gold exploration achievements in recent memory has been GOR's fast tracked advancement of Gruyere, which it took from anomaly to a resource of 3.84 million ounces in just 10 months - and it still remains open at depth.

The deposit is also placed proximal to comprehensive mining-specific infrastructure, which will expedite production and minimise operational costs.

GOR's capitalisation of $160 million pre capital raising still leaves a lot of room for appreciation.