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Magmatic Resources (ASX:MAG) plans to raise $5M to accelerate East Lachlan exploration
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  • Magmatic Resources (MAG) has obtained binding commitments from a range of investors for a $5 million capital raise
  • More than 16 million shares will be issued to sophisticated and institutional investors at a price of $0.30 per share
  • Funds raised will be used to rapidly progress Magmatic's exploration activities at its East Lachlan province in NSW
  • Some money will also be used to rapidly progress exploration activities at its other advanced gold-copper exploration targets in the region
  • Since entering a trading halt on February 11, Magmatic has remained steady with shares trading 28.6 per cent in the green for 45 cents apiece

Magmatic Resources (MAG) has obtained binding commitments from a range of investors for a $5 million capital raise.

Hartleys Limited acted as Sole Lead Manager to the placement while Salient Corporate acted as corporate adviser to Magmatic.

The placement is being made to institutional and sophisticated investors with a total of 16,666,667 shares being issued at $0.30 per share and settlement is anticipated to occur on February 20, 2020.

Funds raised via the placement will be applied to rapidly progress Magmatic's exploration activities at its exploration assets in the East Lachlan province in New South Wales.

The Lady Ilse gold-copper porphyry target will be of particular interest with drilling to begin in late March.

"We are delighted with the overwhelming support we have received for this placement and in the strong interest we are receiving in our upcoming exploration program," Managing Director Peter Duerden commented.

"Following completion of the placement, Magmatic will be well funded to rapidly progress exploration activities of highly prospective exploration assets in New South Wales' East Lachlan Province," he added.

As announced on February 7, Magmatic has received the remaining three out of four lines from a MIMDAS geophysical survey at Lady Ilse.

MIMDAS (MIM Distributed Acquisition System) is an advanced electrical geophysical technique which collects multiple geophysical datasets.

Electrical geophysics is an excellent way to detect upper-level porphyry pyrite rich alteration zones.

Interpretation of the MIMDAS data indicated that the Lady Ilse target has grown significantly compared to previous interpretation and remains open to the south.

Some money will also be used to advance the company's other advanced gold-copper exploration targets in the region.

Since entering a trading halt on February 11, Magmatic has remained steady with shares trading 28.6 per cent in the green for 45 cents apiece.

MAG by the numbers
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