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  • Mako Gold (MKG) has received binding commitments to raise up to $10 million for gold exploration in Côte d'Ivoire
  • A placement will be completed in two phases with nearly 87 million shares to be issued at a price of 11.5 cents each
  • Shares under phase one are expected to be allocated on August 31, while shares in phase two are planned to be allocated on or around October 6
  • Phase two is, however, subject to shareholder approval which will be sought at a general meeting in late September
  • Together with existing cash reserves of $2.8 million, the placement ensures that Mako is well-funded for exploration and will support a future maiden JORC reserve
  • Mako is down 3.57 per cent and shares are trading for 13.5 cents each

Mako Gold (MKG) has received binding commitments to raise up to $10 million for gold exploration in Côte d'Ivoire.

A placement will be completed in two phases with phase one issuing approximately 42.04 million new shares at an issue price of 11.5 cents to raise around $4.83 million.

This issue price represents a 17.9 per cent discount to Mako's close on August 18 of 14 cents, a 14.2 per cent discount to the five-day volume-weighted average price (VWAP) of 13.4 cents, and a 13.5 per cent discount to the 15-day VWAP of 13.3 cents.

Phase two, which is subject to shareholder approval, will issue roughly 44.92 million new shares to raise around $5.16 million.

Shareholder approval will be sought at a general meeting scheduled for September 28.

Shares under phase one are expected to settle on August 28 and be allocated on August 31, while shares in phase two are planned to settle on or around October 5 and be allocated on or around October 6.

Together with existing cash reserves of $2.8 million, the placement ensures that Mako is well-funded to undertake exploration to extend high-grade mineralisation, and underpin a future maiden JORC reserve.

"The significant increase to our balance sheet enables Mako to accelerate exploration on Napié by having one drill rig focussing on the high priority regional prospects where we will be following up positive drill results from our 2018 maiden drilling program," Managing Director Peter Ledwidge said.

"In addition, the funds will allow us to start an aggressive exploration program on our permit applications as soon as they are granted," he added.

Mako is down 3.57 per cent and shares are trading for 13.5 cents each at 12:22 pm AEST.


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