Verity Resources (ASX: VRL) has announced a $1.5 million placement to accelerate the advancement of its Monument Gold Project in the Laverton-Leonora Goldfields of Western Australia. The company has already secured approximately $308,000 through its existing placement capacity and is seeking shareholder approval for an additional $1.2 million. The funds will primarily be allocated towards upgrading the Korong-Waihi Mineral Resource Estimate (MRE) from Inferred to Indicated classification via infill and twin drilling. Furthermore, step-out drilling at Korong-Waihi MRE and testing additional targets across 20km of strike at Monument are planned.
A preliminary open pit study has been completed by Cube Consulting Pty Ltd on the Korong-Waihi MRE, which currently stands at 3.2Mt @ 1.4g/t Au for 154koz Au. The study identified the potential for Resource expansion as the MRE remains open in all directions. Verity intends to commence a review and validation process of historical drilling data to refine its drill program, aiming to upgrade the confidence level of the MRE and potentially expand its size.
The company has received firm commitments for a placement of $307,500 at $0.012 per share, issuing 25,625,000 ordinary shares. Placement participants will also receive options exercisable at $0.022, expiring in March 2028, subject to shareholder approval. An additional $1,192,500 placement of 99,375,000 shares and options will also be voted on by shareholders. The Monument Gold Project benefits from existing infrastructure and proximity to processing facilities, potentially reducing future capital expenditure and operational costs. Verity Resources emphasizes that the project is adjacent to Genesis Minerals’ Mt Morgan Project, further highlighting the area’s gold prospectivity.
