Middle Island Resources Ltd has received binding commitments from new and existing institutional and sophisticated shareholders for a private placement to raise A$1,897,500 (before costs). The proceeds from the placement, combined with the company’s existing cash balance, will be used to fund exploration and development work at the Sandstone gold project, primarily focussed on the Two Mile Hill tonalite deeps deposit.

Exploration and development activities will include resource definition diamond drilling, ore sorting trials, independent resource updates and underground mining studies. In addition, the funds will be applied to exploration drilling at other targets within the Sandstone tenure, the deferred acquisition payment and general working capital.

The company describes the Two Mile Hill tonalite deeps gold discovery at Sandstone as “exciting, and potentially game-changing.”

The picture shows Middle Island Managing Director Rick Yeates.