Forgent plc (LSE:FORG) has increased its ownership of the Peak Hill Gold-Copper Project in Australia to 99% from 51% and announced the start of a Phase 2 drilling programme at the property.

The increased interest gives Forgent a larger ownership position in Peak Hill as it continues exploration for gold and copper mineralisation at the project.

The transaction is being funded in part through a £0.8 million equity placing, with proceeds also allocated to the next phase of exploration and working capital.

Phase 2 programme targets around 8,700 metres of drilling

Forgent’s Phase 2 exploration programme is expected to comprise approximately 8,700 metres of shallow drilling across around 130 holes.

The campaign is scheduled to take place over approximately 60 days and will include further work at the Curley’s prospect following gold and copper results from the Phase 1 programme.

The new campaign will also provide the first systematic drilling test of the Cathedral corridor, which has not previously been drilled.

Forgent intends to use the results to refine its geological model and identify targets for potential subsequent drilling programmes.

£0.8 million placing supports Peak Hill programme

Forgent is raising £0.8 million through an equity placing conducted at a discount to the prevailing market price and accompanied by warrants.

The proceeds are intended to fund the cash consideration associated with the Peak Hill option, the Phase 2 drilling campaign and several months of working capital.

The company also plans to issue consideration, fee and creditor shares in connection with the transactions.

New shares expected to begin AIM trading in September

Admission of the placing shares and the associated consideration, fee and creditor shares to trading on AIM is expected in early September.

The issuance will increase Forgent’s total number of shares in issue, resulting in dilution for existing shareholders.

The financing provides capital for the company’s increased interest in Peak Hill and its planned exploration activities.

Forgent focuses on Australian gold and copper exploration

Forgent plc is an AIM-listed exploration company focused on critical and precious minerals in Australia, including gold and copper.

Its exploration strategy uses drilling, geophysical surveys and geochemical analysis to assess mineralisation and develop geological models that can inform subsequent exploration and development decisions.

Peak Hill is a principal focus of the company’s current exploration programme following the increase in Forgent’s ownership to 99%.