Miramar Resources (ASX:M2R) has tapped investors for $2 million to fund exploration programs at its Whaleshark and Bangemall Projects in Western Australia.
The company plans to raise the funds through a $1.5 million share placement to sophisticated investors and a $500,000 rights issue to eligible shareholders.
The announcement of the capital raise came ahead of Miramar Resources’ presentation at the 2023 Gold Coast Investment Showcase on Wednesday 21 June.
The company reports that under the placement, it will issue 50 million fully paid ordinary shares at $0.03 per share to raise $1.5 million. The placement issue price of $0.03 represents a 38.8% discount to Miramar’s 10-day volume weighted average price of $0.049.
Westar Capital will be acting as Lead Manager to the placement, and the placement shares will be issued in 2 tranches. Tranche 1 will be issued pursuant to Miramar’s placement capacity under ASX Listing Rule 7.1 for 12,057,261 shares.
Tranche 2 will consist of up to 37,942,739 shares, including up to 3,333,333 shares to Miramar Executive Chairman Allan Kelly, and is subject to shareholder approval to be sought at a General Meeting to be held in August 2023.
Additionally, the company intends to raise $550,000 through a pro-rata non-renounceable rights issue of 1 share for every 5 held by eligible shareholders on the record date at an issue price of $0.03 per share.
Commenting on the placement, Kelly says the funds raised will primarily be used for upcoming exploration programs at the Whaleshark and Bangemall projects in the Ashburton and Gascoyne regions of Western Australia.
“Over the last 2 and a half years, whilst outlining a significant amount of gold near Kalgoorlie, we also developed highly prospective targets at Whaleshark, for IOCG (iron-oxide copper-gold) mineralisation, and in the Bangemall region for nickel-copper-PGEs, each capable of hosting a significant deposit.
“With the recent successful EIS funding application, the raising means the company is now well-funded to complete planned drilling programs at Whaleshark and Mt Vernon”
With the recent successful EIS funding application, the raising means the company is now well-funded to complete planned drilling programs at Whaleshark and Mt Vernon.”
Miramar Resources is an active mineral exploration company exploring for gold, IOCG, Ni-Cu-PGE, and REE deposits in the Eastern Goldfields, Murchison, and Gascoyne regions of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Miramar Resources Ltd
