BMG Resources (ASX:BMG) - Managing Director, Bruce McCracken
Managing Director, Bruce McCracken
Source: Bruce McCracken/LinkedIn
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  • WA gold explorer BMG Resources (BMG) receives firm commitments for a $2.5 million placement
  • The money will be raised through the issue of 66 million shares to institutional and sophisticated investors at a price of 3.8 cents
  • BMG will use the money to fund major drilling and exploration programs at its Western Australian gold projects
  • In particular, follow-up drilling will be undertaken at the Abercromby gold project to outline the high-grade Capital Prospect and test regional targets
  • BMG ends the day 11.1 per cent in the red with shares trading at four cents

Western Australian gold explorer BMG Resources (BMG) has received firm commitments for a $2.5 million placement.

The money will be raised through the issue of 66 million shares to institutional and sophisticated investors at a price of 3.8 cents.

This price represents a 15 per cent discount to the five-day volume-weighted average price of 4.47 cents.

Argonaut Securities will act as lead manager and will receive 6,187,500 options, exercisable at 7.5 cents with expiry on June 30, 2024.

BMG will use the money to fund major drilling and exploration programs at its Western Australian gold projects.

In particular, follow-up drilling will be undertaken at the Abercromby gold project to outline the high-grade Capital Prospect and test regional targets.

Previous drilling at Abercromby has returned exceptional results that confirm high-grade gold mineralisation across broad zones which is open in all directions with potential for extensions along strike and at depth.

“Gold exploration continues at pace in Western Australia, and we’re pleased to have received this strong backing from both new and existing shareholders,” Managing Director Bruce McCracken said.

“With these funds secured, we look forward to advancing the next phase of exploration across our portfolio of gold assets in WA, in particular the Abercromby Project, which has been the central focus of our efforts over the past 18 months.”

BMG has ended the day 11.1 per cent in the red with shares trading at four cents.

BMG by the numbers
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