Meeka Metals (ASX:MEK) is conducting a placement to raise $60 million to drive the next phase of growth at the Murchison Gold Project in Western Australia.
Under the placement, shares will be issued at $0.15 per share, representing a 4.1% discount to the 20-day volume weighted average price.
Petra Capital will act as sole lead manager and bookrunner to the placement, while Morgans Corporate will act as a co-manager.
The funds will be used to expand and accelerate open pit operations with mobilisation of a third open pit mining fleet, as well as expediting open pit and underground growth drilling.
Meeka, which has a market capitalisation of $440.24 million, says the funds will seek to confirm the processing expansion pathway beyond the current 600,000 tonnes per year.
Managing Director Tim Davidson says with this funding in place, the company is focused on maximising the expanded open pit mining opportunity.
The Murchison Gold Project hosts a 1.2 million ounce @ 3 grams per tonne gold resource on granted mining leases.
Meeka Metals will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Meeka Metals
