Midas Minerals (ASX:MM1) has received firm commitments to raise $11.5 million in a placement to cover acquisition and exploration costs at the Otavi Copper Project in Namibia.
The company will issue 31.08 million shares at $0.37 per share, representing an 8.6% discount to the last trading price on 15 September, as well as a 10.7% discount to the five-day volume weighted average price (VWAP).
Canaccord Genuity is acting as the lead manager, with Euroz Hartleys acting as the co-lead manager.
Shares will be issued over two tranches, with Midas issuing 31.02 shares in tranche one to raise $11.48 million to settle on or around 24 September.
Subject to shareholder approval at a general meeting in December, the company will issue the remaining 550,000 shares to non-executive director Michael Bohm for the remaining $20,350.
Managing Director Mark Calderwood says the company is grateful for the support received in this placement from new and existing shareholders.
“The funds will allow us to accelerate exploration at the Otavi Copper Project after the acquisition completes, anticipated next quarter,” Calderwood says.
“In May, we raised $6.5M to go towards the acquisition costs and current exploration activities, and our 3,000m first-pass drilling at South Otavi is already underway.”
The drilling program at the South Otavi Project is intended to span for around 100 holes, with potential to be upgraded if deemed necessary.
Midas Minerals is a junior explorer focused on developing its portfolio of copper and precious metals assets across Australia, Canada, and Namibia.
Write to Maddison Elliott at Mining.com.au
Images: Midas Minerals
