LYN raises $1.5M to fund drilling & advance land access

Our critical minerals investment, Lycaon Resources (ASX: LYN), has completed a $1.5M capital raising at a price of $0.25 per share, and Inyati Capital acted as lead manager.

We believe this raise will help reduce LYN’s funding risk before they drill their Bow River project.

LYN will be homing in on a 6km-long gravity anomaly prospect of Nickel-Copper mineralisation, next door to $11Bn capped Nickel producer IGO, at Bow River:

At Bow River, LYN is trying to emulate the historical success of its peer, Panoramic Resources (ASX: PAN), which discovered the Savannah North Nickel-Copper deposit in the Kimberley, 60 kms to the south of LYN’s project. Drilling is set to commence in mid/late August, and we ultimately want to see LYN hit something similar to PAN’s discovery:

We have set up our expectations for the drill program as follows:

• Bull case = intercepts with nickel/copper grades >0.5%.
• Base case = Sulphides intercepted worthy of follow-up drilling.
• Bear case = No valuable metals are intersected.

If LYN makes a discovery, this would be an unexpected positive.

At the same time, if LYN were to hit nothing then we don't think it would have a material impact on LYN’s share price given expectations aren't very high going into the drill program.

In addition to the Bow River drill program, we are closely following the progression of land access negotiations for LYN’s promising Stransmore Niobium-Rare Earth Elements project.

LYN has a large EM target similar to West Arunta Resources (ASX: WA1) rare-earths discovery, which is nearby:

In yesterday’s announcement, the company noted that land access negotiations at Stansmore are progressing - and given the success of WA1, we are looking forward to further updates on this project.

What’s next for LYN?

🔄 Drilling at Bow River Nickel/Copper/cobalt/PGE project

LYN expects to be drilling at its Bow River nickel/copper project in mid/late August.

🔄 Permitting and approvals for rare earths/niobium project

LYN is currently running through the land access & permitting process for the ground.

After permitting is organised the company will start target generation work to work out the best spots to drill.

At the same time LYN still needs to settle the acquisition of its project which includes getting shareholder approvals for the deal.