Meteoric Resources receives applications for $1.76 million in heavily oversubscribed SPP
Tuesday, 16 April 2019 Meteoric Resources NL (ASX:MEI) has received applications amounting to $1.76 million in a heavily oversubscribed share purchase plan (SPP) aimed at raising up to $750,000 at 1 cent per share. The company is delighted with the response to the SPP, which closed on Friday, April 12, 2019. Meteoric's board is reviewing the SPP applications and will scale back applications using its absolute discretion with the final allocation and allotment of SPP shares to be advised shortly. READ: Meteoric Resources executes formal agreement to acquire gold projects in Brazil The company has recently executed a share sale agreement for the acquisition of the Jurena and Novo Astro gold projects in Brazil from Crusader Resources Ltd (ASX:CAS). All material conditions have been met and completion of the acquisition will occur following the transfer of ownership of the Australian and Brazilian entities that hold the project to Meteoric, a process that has already begun with completion expected shortly. The projects are at the western end of the highly prospective Alta Floresta Belt, host to major miners including Anglo American (LON:AAL) and Vale (NYSE:VALE) and is estimated to have historically produced more than 7 million ounces of gold. Meteoric is putting in place a drilling and exploration program that aims to convert existing inferred resources at Juruena to the indicated category as well as grow the resource base at the deposits. Managing director Dr Andrew Tunks said the Juruena and Novo Astro projects represented a step-change in the company’s strategy from greenfields exploration to resource definition expansion. “Based on the enormous database of previous exploration results we can take a bold approach with our drilling which will be designed for maximum impact into and adjacent to known bonanza gold ore zones. “At Querosene and Donna Maria we will taking a three-fold approach that looks to firstly improve the confidence in the resource and grow the percentage of indicated resources by drilling within the current resource boundaries,” he said. The December 2016 Juruena project mineral resource estimate totals 261,000 ounces and is reported at two cut-offs: at 2.5 g/t for Querosene and Dona Maria, which are potential open pit and underground mining zones, and 1 g/t for Crentes.