Three diamond drill rigs have been mobilized for the phase 2 drilling activities at Southern Arc Minerals' Pelangan epithermal gold-silver prospect in West Lombok.
The drill rigs have started diamond drill testing for high-grade shoots at the Central Raja target in the Pelangan Prospect.
Raja forms part of an extensive 3 by 2km area of epithermal gold-silver mineralization, where gold-silver bearing quartz veins and breccias overprint structurally controlled silica-ledges.
Results of 4.85 metres @ 7.11 grams/tonne gold and 19 grams/tonne silver, and 17.25 metres @ 5.73 grams/tonne gold and 12 grams/tonne silver, including 8.75 metres @ 10.51 grams/tonne gold and 21 grams/tonne silver from the first two drill holes of phase 2 drilling at Central Raja were reported in early January.
The drill rigs supplied by PT Promincon Indonesia are capable of coring to depths of greater than 400 metres, which will adequately cover the scope of this phase of drilling.
The company's aim for the next 12 months at Pelangan is to complete phase 2 and infill resource drilling of defined areas, leading to NI 43-101 compliant resource status. In association with this Southern Arc will be aggressively drill targeting bonanza-style ore shoots.
Meanwhile, due to market demand following the successful marketing efforts of Mackie Research Capital Corporation (MRCC) and the syndicate, the company and MRCC have entered into an agreement pursuant to which MRCC has agreed to act as lead underwriter and sole bookrunner in a syndicate of underwriters whereby the underwriters will purchase, on a bought-deal basis, more than 16 million common shares of the company at a price of $1.60 per share for gross proceeds of $27 million.
The underwriters also have the option to purchase up to an additional 15% in shares at the offering price. If the option is exercised in full, the gross proceeds to the company would be $31,050,000.
The proceeds will be used for the ongoing exploration and development of Southern Arc's mineral properties and for general corporate purposes.