Gold producer Silver Lake Resources (ASX:SLR) has announced plans to take a 5.3 per cent stake as a new substantial shareholder in Encounter Resources as part of a $1.4 million placement.
Meantime, Independence Group NL (ASX:IGO) is investing to maintain its 9.2 per cent stake.
Encounter will use the funds raised to advance the recently identified Lamil copper-gold prospects in the Paterson Province of Western Australia, accelerate gold and base metal project generation activities and as general working capital.
Encounter Resources Managing Director Will Robinson says he's pleased to welcome Silver Lake as a new substantial shareholder and the continuing support of Independence Group and other shareholders. Both companies are highly successful mining companies which supports Encounter’s project generator business model.
Shares in Silver Lake Resources (ASX:SLR) are trading 2 per cent lower at $1.23.