Encounter Resources secures A$10.5m placement for Aileron Project

Encounter Resources Limited (ASX: $ENR) has successfully secured firm commitments from new and existing institutional, sophisticated, corporate, and professional investors for a placement to raise A$10.5 million at A$0.22 per share. The placement aims to accelerate and expand the upcoming drill program at the Aileron Project in the West Arunta region of Western Australia. The major drill programs are scheduled to commence in April/May 2024, focusing on testing multiple regional scale carbonatite targets and conducting diamond drilling to test a discrete, high amplitude density anomaly at Perce in the east of the project. Encounter is well-funded with a cash position of approximately A$16 million upon completion of the Placement.

Executive Commentary on Aileron Project and Upcoming Drill Programs

It's a pivotal few months coming up at Aileron as we complete our first pattern-testing of numerous compelling targets in this highly fertile, new mineral belt. The additional funding will allow us to expand our drilling programs at Aileron. Drilling at Emily and Crean is planned to establish the extent of the shallow, high-grade niobium-REE mineralisation intersected in wide-spaced drilling last year. We are particularly excited to complete the first drilling at the large, interpreted intrusions at Green and Joyce located directly east of the Luni discovery made by WA1 Resources. And the first drill hole into the intense gravity feature identified at Perce will be fascinating.

Summary of A$10.5m Placement and Future Exploration Plans

Encounter Resources Limited has successfully secured a A$10.5 million placement to advance the exploration activities at the Aileron Project in the West Arunta region of Western Australia. The placement, priced at A$0.22 per share, will facilitate the acceleration and expansion of the upcoming drill program, with major drill programs scheduled to commence in April/May 2024. The focus will be on testing multiple regional scale carbonatite targets and conducting diamond drilling to test a discrete, high amplitude density anomaly at Perce in the east of the project. The additional funding will enable the company to expand its drilling programs and further explore the shallow, high-grade niobium-REE mineralisation intersected in previous drilling. Encounter is well-funded with a cash position of approximately A$16 million upon completion of the Placement. The company's ambitions include rapidly identifying near surface anomalism/mineralisation at the Southern and Northern Targets, conducting ground geophysics, and performing initial metallurgical assessment of mineralised carbonatites at Aileron. The placement is expected to be settled on 10 April 2024, and the company aims to utilize the proceeds for further RC and diamond drilling, expanded aircore drill program, ground geophysics, initial metallurgical assessment, copper exploration, and general working capital and offer costs.