McLaren Minerals (ASX:MML) is raising $3.6 million through an underwritten entitlement offer to fund advancement of the company’s namesake project in Western Australia.
The company will issue one share for every one held, equaling up to the issue of 198.7 million shares at $0.018, representing a 32.9% discount to the five-day volume weight average price of $0.028.
Every two shares subscribed in this offer will return on short-term unlisted attaching option and one long-term listed attaching option. Unlisted options are exercisable at $0.024, while listed options are exercisable at $0.035 and to expire on 5 February 2028.
Leeuwin Wealth and Cumulus Wealth are acting as joint lead managers. Leeuwin is also the underwriter and corporate advisor for this offer, which is expected to open on 12 November before closing on 3 December.
Eligible shareholders who take up their rights and McLaren directors will be eligible to apply for new shares and options in this offer. Directors will only be eligible to subscribe for remaining securities following consultation with Leeuwin and within a three-month period from closing.
Managing Director Simon Finnis says the company attained a “funding milestone in what is traditionally a difficult period for small resource companies looking to develop a project”.
“Funds raised in the entitlement offer will be applied to the next phase of Feasibility for McLaren and we look forward to rapidly progressing our project through feasibility and into production,” Finnis says.
“The offer will be made available to all eligible shareholders of the company across the offer period, where shareholders will be afforded the equitable opportunity to support the company in moving towards production at the McLaren Project.”
Meanwhile, McLaren has identified a potential second shoreline sequence at the project, hosting mineralisation that may be associated with an older, lower shoreline horizon found within the same sequence prominent in the current resource.
“We already knew McLaren was a large deposit but the geological interpretation indicating other shorelines are present in the vicinity opens up significant opportunities for further, and different mineralisation,” Finnis adds.
McLaren intends to follow up on phase one drill results as the horizon is believed to be hosted beneath the defined deposit, within the same sedimentary units uncovered earlier this year.
The company will integrate geological data into the existing model and finalise an upcoming drill program to confirm the extent and tenor of the target and mineralisation northeast and southwest to the known resource.
The McLaren Project currently holds a resource of 280 million tonnes @ 4.8% heavy minerals over both the indicated and inferred categories.
McLaren Minerals is a mineral explorer focused on developing its namesake titanium project in the Eucla Basin of Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: McLaren Minerals
