Mid-tier gold miner Silver Lake Resources has become a substantial shareholder in Encounter Resources, subscribing for 6.7 million ordinary fully paid shares at 7.5 cents a share, resulting in a holding of approximately 5.3 per cent.

The move was part of a placement to sophisticated investors at the same price to raise an approximate total of $1.4 million before costs. 

Independence Group will maintain its 9.2 per cent stake in the company after supporting the placement to sophisticated investors  

“We are very pleased to welcome Silver Lake as a new substantial shareholder and the continuing support of Independence Group and other shareholders,” Encounter Resources Managing Director Will Robinson said. 

"Collaborating with high-quality partners provides multiple opportunities and significant leverage to a pipeline of potential tier-one discoveries for our shareholders.”

Encounter plans to use its newly acquired funds to advance recently identified Lamil copper-gold prospects at its Telfer West project in the Paterson Province in Western Australia, accelerate gold and base metal project generation activities and as general working capital.

The company expects to hold approximately $3.9 million in cash following completion of the placement.


Image: Will Robinson, The West Australian.