Breaker seeking $10m
23 August 2017
Miningnews.net
TOM Sanders continues to put Breaker Resources into an enviable corporate position with a current fund raising underway set to ensure the junior has plenty of cash to boost exploration at the promising Lake Roe gold discovery.
MNN understands the junior is seeking about A$10 million from investors willing to pay 70c per share.
Breaker shares have spent much of the past few months trading in a range of about 66-74c.
Breaker started the current quarter with $7.3 million in its treasury, and prior to this current raising was capitalised about $95 million.
Sanders refused to comment on Breaker’s fund raising and its expenditure intentions when contacted by MNN.
But fair to guess accelerating drilling could be on the agenda given the company’s claim at the Diggers & Dealers Mining Forum in Kalgoorlie earlier this month that around 80% of the circa-100,000 metres of drilling to date had been reconnaissance in nature – “due to the scale of the system”.
Word around the traps at the conference in Kalgoorlie was that diamond core drilling in particular was keenly awaited by the established gold miners potentially keen on acquiring the project.
Lake Roe’s potential size and prime location near Kalgoorlie in low-risk Australia notionally make it of prime interest to the likes of Evolution Mining, Northern Star and Regis Resources – to cite a few obvious ASX gold corporates with bulging bank balances and ongoing ambitions of grandeur.
However, assuming Breaker’s exploration continues to be successful, and the metallurgy and all other aspects of a typical mining development also look positive – all of which have a habit from time to time in the mining game of not quite going to plan! – there are still some potentially sizeable road blocks facing M&A types.
In particular all indications are that Sanders is already a vast distance away from underselling the potential of the project, with his CV also suggesting a potential preparedness for Breaker developing the project in its own right.
There is also the likely strong competition for the asset, leading to bruised egos for those that fail in any bidding war, and the inevitable accusation being levelled at the victor of having paid “overs”.
Still, throw in some of the gold majors on the ground in Western Australia, and there’s no shortage of potential suitors if the project continues to stack-up with the obligatory ‘blue sky’ thrown in.
These are the sort of situations for which investment banker-types are paid the big bucks!