Reach Resources

Heritage Clearance Obtained & $4M Placement Completed

Reach Resources Limited (ASX: RR1) (“Reach” or “the Company”) is pleased to announce that it has received binding commitments to raise A$4 million through a strategic Placement.


HIGHLIGHTS

  • Firm commitments received for A$4.0 million at 1 cent per share (0% discount to closing price on 27 July 2023)
  • Strategic Placement to Australian & UK fund management institutions including new and existing sophisticated investors
  • Maiden drill program to commence with over 4,500 metres to be drilled at the Company’s 100% owned Morrissey Hill Lithium Project (E09/2375), Yinnetharra WA
  • Receipt of all regulatory approvals and permits, including Aboriginal heritage clearance, obtained for Morrissey Hill, Yinnetharra WA
  • Drilling contractors Strike Drilling & DDH1 booked to mobilise to site, week commencing 14 August
  • Placement funds further allow the Company to fast track the approvals process at the Company’s highly prospective Niobium and REE Project at Wabli Creek, Yinnetharra WA

Figure 1: RR1 Yinnetharra Tenement Plan

The Placement will see the Company issue 400 million new shares at an issue price of $0.01 per share (“Placement Shares”), each with a 1:3 free attaching unlisted option, exercisable at $0.01 and expiring 4 August 2025 (“Options”).

The majority of the strategic Placement was granted to Australian & UK fund management institutions, in addition to new and existing Australian sophisticated investors.

Funds raised will be immediately put to work with drilling contractors, Strike Drilling and DDH1 engaged to mobilise to the Company’s Morrissey Hill lithium project (Yinnetharra) in the Gascoyne Mineral Field, Western Australia, during the week commencing 14 August 2023.

Figure 2: RR1 Morrissey Hill (E09/2375), Yinnetharra ‐ Proposed Drilling (Refer ASX Announcement 15 May 2023 for highlighted results)

The maiden drill program will consist of a proposed ~2500m RC and ~2000m diamond drill hole program concentrated on the Bonzer Pegmatite Field but may include reconnaissance holes at the Malibu Lithium prospect, the Swallowtail Copper prospect and further south of the Bonzer Pegmatite Field where a large number of outcropping pegmatites have been recently mapped and heritage cleared.

The program will include ~8‐10 RC holes to approximately 100m to 300m depth and another 8‐10 DDH to similar depths for ~4500m drilling in total. Holes are planned to assess grade, size and scale of the mapped pegmatites and test for the presence of “blind” sub‐surface pegmatite bodies.

The Company is pleased to announce the receipt of all necessary approvals and permits, including Aboriginal heritage clearance and a program of works (“POW”), allowing the commencement of the Company’s maiden drilling program at the Morrissey Hill Lithium Project.

The Reach Exploration team worked with the Yinggarda Traditional Owners to assess and clear four large polygons across the Morrissey Hill project, which provides the Company with the flexibility to drill the large number of outcropping pegmatites identified and avoid any areas of cultural significance anywhere within the polygons. The POW was also submitted and approved on this basis.

Reach CEO Jeremy Bower said: “Since acquiring our Yinnetharra projects in April we are really happy with what we have achieved over the past couple of months. Our exploration team has been methodical, using all the tools at our disposal to identify and confirm the Bonzer pegmatite field, including the numerous other pegmatites across Morrissey Hill, as both highly fractioned and lithium bearing at surface.

The Bonzer prospect only represents a small portion of the potential at Morrissey Hill, but we have always said the Bonzer is a walk‐up drill target and following the outstanding rock chip results obtained at this location, it’s without a doubt our first stop. Having Strike Drilling and DDH1 mobilising in a couple of weeks to kick off our maiden drilling program, on an area that has never been previously drilled is exciting.

None of this would have been possible without the co‐operation and support of the local Yinggarda people during the recently completed heritage surveys at Morrisssey Hill. We look forward to building a strong relationship with the Yinggarda people as we assess more pegmatite areas.

Delta Lithium are doing some great work next door and reporting fantastic results from the same pegmatite system. Morrissey Hill deserves to be drilled comprehensively, and with the $4 million raised under the Placement, the exploration team can take their time and do things right. Additionally it provides sufficient funding to fast track the necessary approvals required to get things moving at Wabli Creek where the Company has reported very promising Niobium results.

We are delighted with the outcome of the Placement which secured strong institutional support from new investors who recognise the value in the Company. We look forward to providing regular updates over the coming months as we obtain assays from over 5000 soil samples and as drilling gets underway.”


Click here for the full ASX Release

This article includes content from Reach Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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