Investigator Resources to raise up to $8.3 million in fully underwritten rights

Investigator Resources (ASX: IVR) has launched a three for seven non-renounceable rights, which will raise up to $8.3 million through the issue of up to 75.7 million new shares.

The issue price will be $0.11, and is a discount to the last traded price of $0.135.

Most importantly for the capital raising program, and showing a major vote of confidence in the company's operations, the issue is fully underwritten by Austock Securities.

Shareholders will also be provided with the opportunity to further increase their shareholding in the company by applying for shares in excess of their pro rata entitlement.

Applications for additional shares will be satisfied in the event of and to the extent that there is any shortfall in acceptances.

Investigator Resources said the funds will be used for advanced drilling at the Paris prospect, where the company had some recent drilling success - with very high grade results such as 4 metres at 913 g/t silver from 72 metres; 3 metres at 554g/t silver from 90 metres; and 12 metres at 211g/t silver from 60 metres.

Funds will also be allocated for scout and first pass drilling at a number of other potential metal targets in the region, and the target definition and initial drill testing work at the company's Bute copper / gold targets on the Yorke Peninsula.

John Anderson, managing director, commented, “Last month we announced excellent results in initial assays received for the first comprehensive drilling of the Paris silver prospect which is a milestone achievement.

"This capital raising will allow us to more rapidly progress our exploration strategy by extending drilling at Paris to advance the prospect to resource status and by continuing to explore the nearby areas identified by our successful inhouse prospectivity model."

Originally published at: http://www.proactiveinvestors.com.au/companies/news/19897/investigator-resources-to-raise-up-to-83-million-in-fully-underwritten-rights-19897.html