Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Gold Mountain Mining (GMN) will raise $5.1 million through a renounceable rights issue to further fund exploration work
  • GMN will also use the extra cash to help pay down its debts, with $1 million worth of loans and creditors to be repaid through subscribing under the offer
  • Under the rights issue, investors will be offered one new share for every three held, with new shares priced at 2 cents each —a 37 per cent discount
  • GMN will issue a new attaching option for every three new shares received, with an exercise price of 4 cents and a scratch date of 18 months
  • Company shares are down 6.25 per cent at 3 cents each at 3:44 pm AEST

Gold Mountain Mining (GMN) will raise $5.1 million through a renounceable rights issue to further fund exploration work.

The company said it would also use the funds to help pay down its debts, with $1 million worth of loans and creditors set to be repaid through subscribing under the offer.

Under GMN’s newly announced rights issue, investors would be offered one new share for every three held, with new shares priced at 2 cents each. The company said that price represented a considerable discount.

For every three new shares issued, GMN would issue an attaching option as well, with each option to have an exercise price of 4 cents and a scratch date of 18 months.

The rights issue has been partially underwritten by Mahe Capital for $2.05 million, while company directors have committed just over $643,000.

Gold Mountain plans to use the majority of the funds to further explore its Wabag Project, including a targeted drill program at the project’s Mt Wipi area of Papua New Guinea.

GMN announced it would begin drilling Mt Wipi again later this month with the initial four-hole program set to focus on three previously defined exploration targets at the site.

GMN shares were trading down 6.25 per cent at 3 cents each at 3:44 pm AEST.

GMN by the numbers
More From The Market Herald

" Barton Gold (ASX:BGD) kicks off new round of drilling at Tunkillia project

Barton Gold (ASX:BGD) has begun a drilling program at its Tunkillia gold project in South Australia.
Recce Pharmaceuticals (ASX:RCE) - Chief Executive Officer, James Graham

" Recce Pharmaceuticals’ (ASX:RCE) clinical trial returns positive safety profile

Recce Pharmaceuticals (ASX:RCE) has seen its clinical trial receive a good safety profile among ten healthy…
IGO (ASX:IGO) - CEO & Managing DIrector, Peter Bradford

" IGO (ASX:IGO) produces first battery-grade lithium hydroxide from Kwinana refinery

IGO (ASX:IGO) has produced the first battery-grade lithium hydroxide from the Kwinana Lithium Hydroxide Refinery in…
Marquee Resources (ASX:MQR) - Executive Chair, Charles Thomas

" Marquee Resources (ASX:MQR) begins drilling at Kibby Basin

Marquee Resources (ASX:MQR) has begun drilling at the highly prospective Kibby Basin lithium project in Nevada,…