Meeka Metals (ASX:MEK) reports that firm commitments have been received to raise $3.5 million at $0.04 per share to fund drilling, project development approvals, and for general working capital.
The proceeds raised will be used for exploration and infill drilling at the Murchison Gold Project with a focus on ‘high-grade’ gold discovery along the 7km long shear system, which already hosts the St Anne’s and Turnberry deposits (710,000oz Au).
The funds will also be deployed for completion of key permitting activities to advance the Murchison Gold Project through to a ‘shovel ready’ development stage.
The placement will comprise the issue of 87.5 million fully paid ordinary shares
raise $3.5 million (before costs) at an issue price of $0.04 per share. Participants will receive 1 attaching unlisted option for every 2 new shares allocated in the placement, exercisable at
$0.06 and expiring 12 October 2025.
Directors and management have subscribed for 5.25 million shares ($210,000), of which 3.75 million ($150,000) is subject to shareholder approval. Shareholder approval for the
director placement will be sought at the Annual General Meeting to be held in November 2023.
All new shares issued under the Placement will rank equally with existing shares on issue.
Meanwhile, Harry Miller has resigned as joint Company Secretary. Tony Brazier will continue as Company Secretary and remains responsible for communications between Meeka and the ASX.
Write to Adam Orlando at Mining.com.au
Images: Meeka Metals