Pursuit Establishes an At Call Funding Facility

Our junior exploration Investment, Pursuit Minerals (ASX:PUR) established an At-the-Market Facility (ATM) yesterday with Alpha Investment Partners for up to $5M.

The funding facility is basically a line of financing available to PUR that the company can tap at its discretion.

If PUR decides to use any of the $5M, then it will simply undertake a placement with Alpha Investment Partners based on a reference share price.

The key terms for the facility are as follows:

• PUR can access the funding facility at its own discretion.
• Shares will be issued at the GREATER of the floor price set by PUR and up to a 10% discount to a Volume Weighted Average Price (VWAP) over a period of PUR’s choosing

The key takeaway for us is that PUR now has even more cash available to it if it needs it.

We think this should allow it to quickly ramp up drilling activities should they find anything of value in the upcoming assays (late August) from their Commando gold project in WA.

PUR had over $6.9M in cash at the end of the March quarter so we don't expect the company to need to tap the facility unless there is a compelling reason to spend a large sum of money.

As a result, we think PUR (currently capped at ~$16M) is in a pretty enviable position as a junior explorer, at a time in the market when raising cash is hard for small companies.

What’s next for PUR?

Assay results from the company’s 5,500m AC drilling campaign at its Commando gold project in WA (late August).