XRA to Use Bought Deal Proceeds to Develop Cerro Moro, Caspiche
Analysts at Newcrest resume coverage of Exeter Resource Corp (AMEX: XRA) with a “speculative buy” rating. The target price for XRA has been raised from C$8.50 to C$9.50.
XRA has closed a bought deal, in which it sold 8,550,000 common shares for $5.85 per share. Exeter Resource is likely to use the gross proceeds of $50,017,500 for the exploration and development of its Cerro Moro and Caspiche properties as well as for general corporate purposes, Newcrest says.
The market is likely to focus on Caspiche, with drilling having resumed recently. There have been positive results from the fomicruz extension at the Cerro Moro property. XRA is expected to provide a revised resource estimate for Cerro Moro in 2Q10 and one for Caspiche in 3Q10, Newcrest adds.
