- Gateway Mining (GML) taps investors for $2.5 million through a placement
- The placement funds will go towards accelerating exploration efforts at the company’s flagship 500,000 ounce Montague gold project in Western Australia
- The placement was strongly supported by exisiting and new investors, and will see 40.3 million shares issued at 6.2 cents each
- Field work is set to resume at the project in the coming weeks to evaluate the full potential of the tenure
- GML shares dropped 1.43 per cent, trading at 6.9 cents at 1:20 pm AEDT
Gateway Mining (GML) has tapped investors for $2.5 million through a placement to fund the next phase of exploration efforts at its flagship Montague gold project in Western Australia.
The funds will go towards its next phase of field work at the 500,000 ounce gold project.
The upcoming field work will include continued exploration for shallow oxide zone deposits and the commissioning of a number of two-dimensional seismic survey lines over the Montague granodiorite and main mineralised structures.
Additionally, GML will begin large-scale geochemical soil sampling, along with scout air-core drilling programs and will engage in deep diamond drilling to test prospective positions.
The placement included 40,322,582 shares issued at 6.2 cents each – an 11.4 per cent discount on GML’s last closing price of seven cents per share.
The placement was strongly supported Gateway’s directors Mark Cossom, Trent Franklin, Scott Brown, Debbie Fullarton and Peter Lester, who committed $210,260, subject to shareholder approval.
“We are pleased with the significant report received from existing and new shareholders through this capital raising, which will allow us to push the button on an ambitious exploration strategy in 2023,” Gateway Mining Managing Director Mark Cossom said.
“We have been successful in growing the mineral resource inventory at Montague to over 500,000 ounces of gold, not only around historically mined open pits but also in several new discoveries.”
“We are grateful to those existing and new shareholders that have shown continued support of the company, as we embark on our plans to unlock the true value of the Montague project.”
The funds will also go towards the cost of the placement, as well as corporate and general working capital purposes.
GML shares were down 1.43 per cent, trading at 6.9 cents at 1:20 pm AEDT.