Yugo Metals Ltd. has received firm commitments to raise AU$5 million by issuing shares, a move that will fast-track its exploration campaigns across three projects in the Balkan region.
The capital raise will see the company issue 52.1 million ordinary shares at 9.6 cents per share. The placement was oversubscribed, and the company decided to accept AU$5 million from long-standing shareholders and a select group of new strategic backers.
Coupled with existing reserves, the company is now fully funded with approximately AU$7 million to drive intensive exploration outcomes over the next 18 months.
The fresh funding will immediately target simultaneous drilling campaigns across the company’s diversified portfolio. Resources will be heavily directed toward the Sinjakovo gold project to follow up on a recent high-grade diamond drilling discovery at the Erak prospect, where historical surface trenching previously yielded 61 metres at 1.5 grams per tonne of gold.
Funds will also restart exploration at the Sockovac nickel-cobalt project, breaking a 56-year hiatus at the historical site to validate high-grade intercepts, including 5.1 metres at 6.6 per cent nickel.
Additionally, maiden drilling will commence at the Cajnice base metals project, testing highly prospective silver, zinc, and lead targets.
Yugo Metals Executive Director and CEO Petar Tomašević was pleased at the strong demand for the capital raise and the belief from investors at the geological potential of the Balkan region.
“Our objective over the next 18 months is clear — to deliver at least one material outcome that can unlock significant value and reward our shareholders,” Tomašević said.
“Yugo Metals is now fully funded to explore, drill and advance all three of our projects simultaneously.”
The placement is scheduled for allotment on or about June 10.