Lachlan Star raises $7.47 million for maiden exploration program at New Waverley gold project at Norseman

Lachlan Star will begin its maiden exploration of the New Waverley gold project at Norseman after acquiring a 90 per cent stake from renowned local prospector David (Golly) Pascoe. Lachlan Star told the Australian Securities Exchange on Wednesday it had received firm commitments to raise $7.47 million via a share placement at 12¢ a share. The company said it had defined high-potential targets across a prospective corridor containing “Norseman-style” high-grade quartz reef structures. Lachlan Star said drilling would focus on systematically testing this corridor to confirm historical drill intersections at the 30-metre-deep Waverley and six-metre-deep Trial pits and to determine the potential for repeat high-grade gold intersections along strike and at depth. The company said it would also continue to progress exploration activities at its neighbouring Killaloe Project as part of its broader exploration portfolio and growth strategy. Lachlan Star acquired its stake in New Waverley, 16km north-east of Norseman, in February from Mr Pascoe, who had owned it for the past 13 years. The company said the terms of the acquisition included payment of $150,000 in cash and issuing of 12.5 million fully paid ordinary shares, of which 50 per cent were subject to voluntary escrow for 12 months. It said Mr Pascoe would retain a 10 per cent free-carried interest through to completion of a pre-feasibility study within New Waverley. Lachlan Star said this would not include the production joint venture area, which comprised the Waverley pit, trial pit and Baker Boys prospect and associated stockpiles, where a 50:50 net profit share had been set over near-surface areas to 100m below current surface. The company said a net smelter royalty of one per cent was payable on any production within the New Waverley project, not including the production joint venture area. Chief executive Andrew Tyrrell on Wednesday said New Waverley represented a large-scale, under-tested gold system with excellent exploration and growth potential around the historical open-cut workings and along strike. “This capital raising provides us with a solid foundation to rapidly progress drilling across the project and to evaluate its full extent,” he said. “We are extremely pleased with the strong support received from existing shareholders and new investors, which enables the company to maintain its current momentum and accelerate drilling if required as we advance the project.”