Shares in Kalgoorlie gold explorer Zuleika Gold more than doubled in intraday trading after wily WA “prospector” Mark Creasy produced a $3m cheque to back the company’s gold exploration efforts near Kalgoorlie. Zuleika shares touched 4.7c after closing at 2c the day before when the market learned the man with the Midas touch saw something he liked at Zuleika.
Notably Creasy took the placement in Zuleika at 3c when it was trading at 2c, further underlining the quality of Zuleika’s gold assets in the Goldfields. Despite paying 50 per cent over the odds, Creasy is already in the money after the market played catch up with the company’s shares closing at 3.5c for the day.
The veteran prospector’s Yandal Investments said it would take up 100 million fully paid ordinary shares at 3c a share and another 100 million options at various strike prices between 5c and 10c.
Zuleika has interests in six major gold projects in the Kalgoorlie region. It is earning a 75 per cent share of its namesake project, 50 per cent of its Credo project, and 80 percent of its Goongarrie and Menzies gold projects.
The company said the cash will underpin ongoing high-impact drilling programs across all of its current projects.
AC and RC drilling programs will continue on Zuleika’s tier-1 targets at Breakaway Dam, Paradigm East and Browns Dam on the Zuleika and Credo projects and the company said it is looking to generate further drill targets across its wider portfolio.
The Zuleika Project comprises 230sqkm of tenements located on the prolific Zuleika Shear that has produced more than 20 million ounces of gold over the last 30 years. The area still hosts a number of sizeable operational mines.
Mr Creasy’s record as a successful prospector and investor has resulted in Mark being one of the largest exploration land holders in Western Australia. As such, Zuleika is excited that its strategic Kalgoorlie focussed tenement portfolio has attracted Mr Creasy as a substantial investor in the Company.
Over the past 12 months, Zuleika’s exploration team has propelled Zuleika from an early stage explorer to a company with the potential to enhance existing resources and with multiple drill targets. This early exploration success confirms the significant potential of Zuleika’s asset portfolio and the ability of its skilled and committed exploration team.
Creasy’s involvement in Zuleika will serve to focus the market’s attention on the company’s portfolio and particularly on its land around the famed Zuleika sheer.
Pundits will also no doubt take note of the last series of options awarded to Creasy as part of the placement that carry a strike price of 10c which would represent a 5 bagger from yesterday’s close.
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