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BMG Resources (ASX:BMG) - Chairman, Greg Hancock
Chairman, Greg Hancock
Source: Cobra Resources
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  • Mining company BMG Resources (BMG) receives firm commitments to undertake a $4 million placement
  • A total of 80 million shares will be issued to institutional and sophisticated investors at five cents
  • BMG will use the money to fund drilling and exploration programs at its West Australian gold projects
  • Specifically, follow-up drilling will be undertaken at the Abercromby Gold Project and a maiden drilling program will begin at the Invincible Project
  • Shares in BMG are down 7.81 per cent and are trading at 5.9 cents at 1:56 pm AEST

Mining company BMG Resources (BMG) has received firm commitments to undertake a $4 million placement.

The company entered a trading halt on July 8 but did not disclose how much it intended to raise or what it would use the funds for.

A total of 80 million shares will be issued to institutional and sophisticated investors at five cents.

This price represents a 4.8 per cent discount to the 15-day volume-weighted average price of 5.25 cents and an 11.9 per cent discount to the five-day volume-weighted average price of 56.8 cents.

Argonaut Securities and Taylor Collison will act as joint lead managers and subject to shareholder approval, will be granted six million options exercisable at 10 with expiry on August 31, 2023.

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

Specifically, follow-up drilling will be undertaken at the Abercromby Gold Project and a maiden drilling program will begin at the Invincible Project.

Managing Director Bruce McCracken is thankful for the support received and is keen to begin work at its West Australian projects.

“Our maiden drill program at Abercromby returned results displaying width and grade that supports the presence of a significant volume of gold mineralisation,” Mr McCracken commented.

“We are excited to be progressing to a follow-up drill program at Abercromby that will be designed to further scope the extent of this high-grade gold mineral system.

“Initial work at Invincible has identified targets for potential gold mineralisation, and we are pleased to also advance further drill and exploration programs for this gold project.”

Shares in BMG were down 7.81 per cent and trading at 5.9 cents at 1:56 pm AEST.

BMG by the numbers
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