$12.5m raised. $40m demand, page-22

Stuart McKinnon - The West Australian on September 29, 2016, 8:22 am

Breaker Resources executive director Tom Sanders. Picture: Sharon Smith/The West Australian.
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UPDATE 3pm: Breaker Resources continued to climb today after the explorer raised $12.4 million in a heavily oversubscribed placement.

Breaker said the raising, priced at a discounted 50 cents a share, was heavily oversubscribed.

The cash will be used to continue an aggressive drilling campaign at the company’s Lake Roe project, which has already yielded positive results.

The company is hopeful its two discoveries at the project, Bombora and Bombora North, are linked by a rich, shallow vein of gold mineralisation.

Breaker executive chairman Tom Sanders said he believed that the strong demand for the raising reflected mounting evidence that Lake Roe hosted a major new gold system with significant open pit and underground mining potential.

“The demand for the placement from institutions is particularly pleasing as it is a big vote of confidence by professional investors in the project’s potential,” he said.

“Given the strong results to date, we plan to be drilling for the foreseeable future and this will provide steady newsflow as we unlock the potential of the project.”

Breaker shares were up 7.5 cents, or 11.54 per cent, to 72.5 cents at the close after touching an all-time high of 74 cents.

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