Yugo Metals (ASX:YUG) secures $5M placement to accelerate Balkan drilling programs

Yugo Metals (ASX:YUG) has received firm commitments to raise $5,000,000 before costs through a strongly oversubscribed placement.

The funds will be used to accelerate exploration activities across the Sinjakovo, Sockovac and Cajnice projects in the Balkans, with the company electing to accept A$5.0M from a combination of long-standing shareholders and a select group of new strategic and institutional investors.

Highlights

• Strongly oversubscribed placement raising $5,000,000 before costs.
• Placement priced at $0.096 per share, representing a discount of approximately 4% to the last closing price of $0.10.
• Funds to accelerate drilling across the Sinjakovo, Sockovac and Cajnice projects.
• Fully funded with ~A$7M to deliver material exploration outcomes over the next 18 months.
• Follow up diamond drilling planned at the Erak Prospect within the Sinjakovo Project.
• Planned restart of drilling at the Sockovac nickel project after a 56 year hiatus.
• First ever drilling planned at the Majdan and Pisonica prospects within the Cajnice Project.

The placement comprises 52,083,333 fully paid ordinary shares at an issue price of $0.096 per share, with the company stating that strong demand from both existing and new investors resulted in the placement being oversubscribed and electing to accept A$5.0M from long-standing shareholders and a select group of new strategic and institutional investors.

At the Sinjakovo Project, funds are planned to be used for a follow up diamond drilling program at the Erak Prospect, to extend mineralisation down dip and along strike.

The company also plans to execute Phase 1 drilling to validate previously reported trenching results of 61m at 1.5g/t gold, together with assay testing, geological modelling and metallurgical testing.

At the Sockovac Project, the company plans to restart drilling after a 56 year hiatus, with the planned Phase 1 program including twin drilling to confirm historical intercepts of 5.1m at 6.6% Ni and 1.5m at 15.0% Ni, together with multi element analysis including cobalt.

Geophysical surveys to define extensions and generate robust targets, together with Phase 2 extensional drilling, are also included in the planned work program.

At the Cajnice Project, funds are planned to be used for first ever drilling at the Majdan and Pisonica prospects, where the company reported previous rock chip results of up to 2g/t gold and 200g/t silver at Majdan, while Pisonica returned rock chip results of up to 51g/t silver, 1% zinc and 3% lead, with surface sampling also planned across all three projects.

Yugo Metals Executive Director and CEO Petar Tomašević said,

“Yugo Metals is now fully funded to explore, drill and advance all three of our projects simultaneously.”

The funds raised from the Placement will be used towards follow up diamond drilling at the Erak Prospect, Phase 1 drilling at Sinjakovo, twin drilling and geophysical surveys at Sockovac, first ever drilling at the Majdan and Pisonica prospects within the Cajnice Project, together with assay testing, geological modelling, metallurgical testing and surface sampling.

The company stated that it is fully funded with ~A$7M to deliver material exploration outcomes over the next 18 months. Surface sampling is also planned across all three projects.

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