ASX-listed mining exploration company Magmatic Resources (ASX:MAG) reports it has obtained firm commitments from investors for a placement of about $3 million to expand and accelerate exploration at its Myall Copper-Gold Project in New South Wales.
The placement is reported to have been ‘strongly’ supported by both new and existing investors from institutional and professional backgrounds and has resulted in the introduction of a number of offshore institutions to the register.
It is reported that funds generated from the placement will be applied to expanding and accelerating the high impact drilling program at the project and comes following ‘strong’ initial results generated at the Corvette prospect.
Addressing the fund raising, Magmatic Resources’ Managing Director, Dr. Adam McKinnon said: “Magmatic thanks its existing shareholders for their continued support and looks forward to welcoming a number of new incoming shareholders to the register.
“We are exceptionally excited by the opportunity this capital raising provides the company towards defining a potential Tier 1 porphyry copper-gold deposit at Myall.”
We are exceptionally excited by the opportunity this capital raising provides the company towards defining a potential Tier 1 porphyry copper-gold deposit at Myall.”
The company also notes that the placement will comprise the issue of 30,206,000 new fully paid ordinary shares at an issue price of $0.10 cents per share and will be issued pursuant to its placement capacity under ASX listing rule 7.1 and 7.1A.
This placement price represents a 9.1% discount to the company’s last close of $0.110 per share, as well as a 21.9% discount to the 5-day volume-weighted average price (VWAP) of $0.128 per share.
In addition, Magmatic reports it will offer existing eligible shareholders the opportunity to take part in a non-underwritten share purchase plan (SPP) in order to raise up to about $1 million.
The SPP also grants company shareholders to apply for up to $30,000 worth of new shares without incurring brokerage or other transaction costs.
The record date for participation in the SPP is scheduled for the 15th November this year.
Magmatic Resources is an Au and Cu explorer focused on exploration within NSW’s East Lachlan Au-Cu Province, an area which boasts an endowment of more than 80Moz of Au and 13Mt of Cu. The company’s Myall project covers the northern extension of the Junee-Narromine Volcanic Belt, situated about 50km north and along strike from the Northparkes Cu-Au mining district.
Magmatic Resources announces the SPP is expected to be opened on 25th November this year before closing at 5pm (AEDT) on 9th December.
Images: iStock
