Demand for stock in Stavely Minerals’ (SVY) $19.6 million placement at a $1 a share in the wake of its high-grade copper hits at the Thursday’s Gossan project in Western Victoria was a staggering $100 million.
Hits like 32m at 5.9% copper and individual assays of up to 40% copper have obviously fired up interest in the discovery, with Stavely only stopping at $19.6m because that was the threshold for proceeding without the need for shareholder approval.
The stock gets allotted today and it will be interesting to see how it holds up given the temptation for the less committed of the placement recipients to take a stag profit. There was some of that evident on Thursday with Stavely’s fall to $1.18.
But given there was as much as $80m of unrequited demand for the placement stock, it is assumed it will quickly stabilise.
What is more certain is that the Thursday’s Gossan hits have done a world of good for Navarre Minerals (NML), a hardy Victorian gold explorer and the only other ASX-listed group which a meaningful exposure to the excitement generated by the lightly explored Stavely Arc volcanics.
Navarre was floated back in 2011 with Stavely Arc rocks part of the package. But all of its work in recent years has been focussed on finding another Stawell gold deposit (5Moz) in a 60km stretch of prospective rocks to the south of the recently re-opened mine and a search to north of Bendigo/Fosterville for repeats of those monsters.
Plus, Canterbury holds its breath ahead of Queensland copper assays and Strandline’s big WA mineral sands project on track to secure funding from the Government’s Northern Australia Infrastructure Facility. Read more +