The project was one of 25 high-quality projects recognised and Vendetta secured the maximum funding available under the state government's Collaborative Exploration Initiative (CEI), the company said.
The cash will help fund drilling two 700 metre (m) deep holes, designed to test whether the Pegmont host sequence repeats at depth. The drill core will be sent to the lab to be analyzed by a hyperspectral core scanning system; the firm said.
"The acknowledgement of the target is a welcome endorsement of the potential that remains at Pegmont," Vendetta director and project manager Peter Voulgaris said in a statement on Wednesday.
"While the company's focus has been, and remains, value-driven resource development, this Queensland Government initiative allows us the flexibility to step away from that development focus and test a very exciting conceptual structural target. If successful, the potential resource expansion has been enhanced significantly," he added.
Vendetta also said it was now preparing a coronavirus (COVID-19) operating procedure, in line with Australian Federal and Queensland State Government rules to allow drilling to commence and has started planning the drilling of the Pegmont Deeps Zinc Target and a broader drill program.
Due to the pandemic, the state government waived the rent on exploration permits and the firm's EPM26210 permit benefits from this, the group noted. Vendetta also applied for relief from the balance of the minimum prescribed exploration expenditure on EPM 26210 for 12 months, ending August 2020.
On Wednesday, the company also announced a private placement of up to 6.25 million units at C$0.08 each for gross proceeds of C$500,000. Each unit will consist of one share and one-half of a share purchase warrant exercisable for two years at C$0.11 each.
Vendetta's wholly-owned Pegmont lead-zinc project lies in the Mount Isa - McArthur Mineral Province, Australia which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant mines.
Shares advanced over 5.2% to C$0.10 each.
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