Earnings release
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HILLGROVE RESOURCES QUARTERLY REPORT PERIOD ENDING 31 MARCH 2021 Hillgrove Resources Limited ( ASX : HGO ) report for the quarter ended 31 March 2021 SUMMARY Successful Capital Raising In December 2020 the Company announced a two - tranche placement and pro - rata non - renounceable entitlement offer ( Offer ) . Tranche 1 of the placement ( $ 2.4M ) was concluded in December 2020 , with the remaining Tranche 2 funds ( $ 5.3M ) received in February 2021 following the EGM . In addition , the $ 2.8M Offer closed more than 20 % oversubscribed , highlighting strong support for the Underground project . In total , $ 10.9M was raised at $ 0.031 per share . All Directors participated in the capital raise . Underground Exploration and Development Following the successful capital raise , drilling commenced during the quarter to expand and infill the Kavanagh and West Kavanagh Mineral Resource Estimate ( " MRE " ) announced in December 2020. The drilling is focussed on : 1. Increasing the geological confidence such that updated Mineral Resource Estimates for Kavanagh and West Kavanagh may be prepared to support mining evaluations and investment ; 2. Expanding the size of the existing MRE to extend the potential mine life ; and 3. Testing the depth extension of the Kavanagh mineralisation which is already demonstrated to extend up to 200m below the base of the open pits and remains open at depth . MANAGING DIRECTOR'S STATEMENT The Kanmantoo Underground Project ( “ Underground " ) presents an opportunity to return the Company to cash generation , with the existing infrastructure and permitted status expected to enable a relatively fast and low capital development . The Resource expansion and infill drilling program commenced in January 2021 and is on schedule and within budget . The Company will announce the interim drilling results ahead of the AGM that will be held on 7 May 2021. In addition , the Company continues to progress technical and economic studies associated with the Underground . HILLGROVE RESOURCES LIMITED ACN 004 297 116