Oakdale Resources launches entitlement offer to raise up to $1.4 million

Oakdale Resources Ltd (ASX:OAR) has launched a non-renounceable pro-rata entitlement offer of one new share for every share held at an issue price of 0.2 cents per new share to raise up to $1.4 million. The offer includes one free attaching quoted option for every two new shares subscribed for. The entitlement offer is available to all Australian and New Zealand shareholders registered at 5.00pm (WST) on the record date on May 7, 2020. Exploration in US and WA Oakdale is also focused on advancing exploration activities including drilling at its Lambarson Canyon Gold Project in Nevada, where road and access works are underway ahead of a drilling program targeting potential porphyry or intrusion style gold mineralisation in this highly prospective gold region. Last week, the company finalised the acquisition of the Crown PGE-Nickel-Copper Project in proximity to the recent high-grade Julimar discovery in a new PGE-nickel-copper province 60-70 kilometres from Perth. The area is underexplored for precious and base metals and the Julimar nickel-palladium discovery highlights the significant potential for discovery at Crown. Subject to the satisfactory completion of the entitlement offer, funds raised are intended to be applied across the company’s exploration prospects, towards Peruvian project development as well as working and other capital requirements. Project development in Peru Since finalising the acquisition of the Chimu Gold Plant in Peru in early 2019, Oakdale has continued to make significant progress towards becoming a cash flowing producing, Peruvian toll treatment business and believes plant commissioning could be completed by end of 2020. The company has submitted the documentation for the 120 tonnes per day licence upgrade to the Chimu plant to the Peruvian mining authority and is awaiting final approval to commence construction upgrade. The plant is strategically located in a highly mineralised area, with thousands of small miners in the immediate vicinity. Oakdale intends to secure supply contracts with many of these miners as source feed for its Chimu Gold Plant. Indicative timetable for the entitlement offer.