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A worker at the Copalquin Project. Source: Mithril Resources
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  • Mithril Resources (MTH) receives commitments to raise $3.3 million dollars to continue work at its El Refugio target in Mexico
  • Investors have shown support for the raise which comprises 220 million shares at 1.5 cents each, marking a 12 per cent discount to the VWAP
  • The funds are set to go towards the continuation of drilling in the Copalquin Gold Silver District in Mexico and completion of a maiden JORC estimate
  • MTH’s main focus for the rest of 2021 is to deliver the resource estimate for El Refugio, where development of an access road is also in the works
  • Shares closed in the grey at 1.7 cents on September 1

Mithril Resources (MTH) has received commitments to raise $3.3 million dollars through a share placement to continue work at its El Refugio target in Mexico.

El Refugio is one of the targets within the Copalquin mining district where mining concessions cover 70 square kilometres and include dozens of historic mines and workings.

As announced in November 2019, Mithril Resources is earning 100 per cent interest in the Copalquin District mining concessions via a purchase option agreement.

Today, MTH announced that sophisticated and professional investors had shown support for the raise which will see 220 million shares issued at 1.5 cents, marking a 12 per cent discount to the five day volume weighted average price.

The funds raised are set to go towards the continuation of drilling in the Copalquin gold-silver district in Mexico, complete a maiden JORC gold and silver resource estimate for El Refugio, preliminary engineering studies and metallurgical testing, and for general working capital.

Specifically, Managing Director and CEO, John Skeet said the cash raise would allow expansive drilling to progress while completing the resource estimate, which remains the company’s focus for the remainder of the year.

Moreover, in the last quarter of 2021, MTH is planning to conduct engineering study work for the development of an exploration access road into the district and an underground exploration drift at El Refugio.

In building an underground drift at El Refugio, the company hopes it will allow for more efficient exploration drilling to develop the resource.

Shares closed in the grey at 1.7 cents on September 1.

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