Moho Resources (ASX:MOH) has received firm commitments to raise more than $1.245 million through a placement at an issue price of $0.03 each.
The company reports that the bookbuild was oversubscribed with strong demand from sophisticated and professional investors.
The issue price represents a 17% discount to the last trading price of $0.036 on 16 September and a discount of 12% to the 15-day volume weighted average price of Moho’s shares traded on the ASX of $0.034.
Moho notes the placement shares will be issued on the same terms as, and rank equally in all respects with, the existing fully paid ordinary shares in the company.
Proceeds from the placement will be used for general working capital for exploration at Moho’s projects, including the Black Swan South follow up nickel sulphide drill campaign; Dukes prospect native title clearance and first pass nickel sulphide drill campaign; advance nickel sulphide and rare earths exploration across Burracoppin, Peak Charles and Empress Springs; and for drilling at the Burracoppin rare earths target.
Peak Asset Management acted as lead manager to the placement.
“The funds raised will be instrumental in the advancement of Moho’s critical minerals exploration strategy”
Addressing the capital raise, Moho Managing Director Ralph Winter stated: “Moho has had a very positive market response through its oversubscribed capital raising and appreciates the valuable support provided by Peak Asset Management.
The funds raised will be instrumental in the advancement of Moho’s critical minerals exploration strategy.”
Meanwhile, the company also reports that the results of a preliminary evaluation by consultant geochemist Richard Carver of REE assay data in the soils within Moho’s 100%-owned tenements at Burracoppin in Western Australia.
Moho notes that despite variations in regolith cover, the soil sampling has successfully highlighted several areas of anomalous Total Rare Earth Elements (TREE). The Burracoppin terrain has abundant granite and granite gneiss rocks as potential sources for TREE.
The lower TREE values typically come from the topographically higher areas (>320m). In the upland areas the higher TREE values are in the lower parts of the topography around the streams suggesting the TREE values are increasing down slope in the weathered material.
Moho reports the higher TREE values in some areas may reflect areas of exposed ionic clays on the edge of the channel which have been exposed by erosion of overlying sediment.
TREEs Nd and Pr were identified in soil samples collected from within Moho’s 100%-owned tenements during July 2022.
The program was aimed at identifying anomalous soils for gold and base metals. It excludes any geochemical evaluation of REE assay data on E70/4688 where the majority of expenditure has been incurred by Moho over the last 7 years at Burracoppin.
Moho and IGO (ASX:IGO) have an unincorporated joint venture for the purpose of exploring and, if warranted, developing and mining.
The Burracoppin project is situated in the WA Wheatbelt and is located about 15km northeast of the regional town of Merredin.
Moho Resources is an Australian mining company which listed on the ASX in November 2018. The company is actively exploring for nickel, PGEs and gold at Silver Swan North, Manjimup and Burracoppin in WA and Empress Springs in Queensland.
Write to Adam Orlando at Mining.com.au
Images: Moho Resources Ltd
