- Magnetic Resources (MAU) is set to raise $2.6 million through a placement
- Around 1.83 million shares will be issued to shareholders at $1.42 per share
- The issue price represents a 12 per cent discount to the average closing price of the prior five days of trading
- The money will be used to conduct drilling and other exploration activities at the Hawks Nest 9 and Lady Julie gold projects in WA
- The new shares are expected to settle on April 30
- Company shares are down 1.56 per cent and trading at $1.58
Magnetic Resources (MAU) has received binding commitments to raise $2.6 million through a placement.
Under the placement, around 1.83 million new shares will be issued at $1.42 per share. The issue price represents a 12 per cent discount to the average closing price of the prior five days of trading.
The placement attracted the interest of a new broker, Viriathus Capital, who’s also acting as the placement’s lead manager.
Magnetic Resources will use the money to conduct reverse circulation (RC) and deeper diamond drilling, metallurgical work, and resource and scoping studies at its Hawks Nest 9 (HN9) and Lady Julie gold projects in Western Australia.
These funds will allow the company to continue the significant drilling campaigns we started in January 2021 with the aim of defining JORC at these two projects,” Managing Director George Sakalidis said.
As of this month, the company has drilled 875 RC holes for 53,819 metres at HN9 and 247 RC holes for 16,597 metres at Lady Julie.
“Our drilling to date has shown four stacked lodes in the top 100 metres and our ongoing drilling will investigate mineralisation at depths down to 300-400 metres,” he added.
The new shares are expected to settle on April 30.
Company shares are down 1.56 per cent and trading at $1.58 at 10:41 am AEST.