Trigg Minerals (ASX: TMG) has entered into a binding agreement to buy the Drummond gold and base metals project in Queensland.
This new venture lies 150km south of Townsville in the Drummond Basin.
Some $6.2 million has already been spent on the project, most of that by a former owner Evolution Mining (ASX: EVN).
Placement completed, rights issue to follow
Trigg plans to define drill targets at Drummond and, in parallel, to complete what it describes as “innovative” pilot test work at its Lake Throssell sulphate of potash project in Western Australia.
These two programs will be financed through a placement, now completed, of $576,000, along with a planned rights to raise a further $1.8 million.
Under the rights issue, shareholders will be able to buy six new shares for every 10 held at an issue price of $0.012.
These new shares will carrying an entitlement of three attaching options for every four new shares purchased.
GBA Capital, a Sydney-based advisory and stockbroking firm, organised the placement and will underwrite $1 million of the rights issue.
Exploring for epithermal gold, silver
At Drummond, Trigg will be exploring for epithermal and intrusion-related gold and silver at existing advanced prospects and well as assessing greenfield potential.
The project is located near several major gold discoveries and producers.
These deposits include Pajingo (3.6 million ounces), Wirralie (300,000oz) and Mount Colon (600,000oz).
At Pajingo, Evolution Mining produces up to 230,000oz per annum at a head grade of between 9 grams per tonne and 15g/t.
Defined resources at five prospects
Historic exploration within the Drummond tenements has defined gold mineralisation at the Limey, Breccia Hill, Quartz Ridge and Bunyip prospects, while at the Charlies prospect there was historic mining of silver, gold and base metals.
Trigg says it will also be looking at high-quality base metals targets which will be considered alongside the gold exploration strategy.