Gold explorer Mt Malcolm Mines (ASX:M2M) has launched a $1.27 million rights issue to advance exploration targets at the Malcolm Gold Project in Western Australia.
Under the non-renounceable rights issue, eligible shareholders will be entitled to apply for 1 new share for every 2 shares held on the record date.
Mt Malcolm says the issue is ‘attractively’ priced at $0.03 per new share, with up to 42.426 million new shares on offer to raise about $1.27 million before costs. This offer price marks a discount of 11.9% to Mt Malcolm’s 5-day volume weighted average price (VWAP) and a 16.2% discount to its 10-day VWAP prior to the announcement of the issue today (15 May 2023).
The company says the funds will underpin its next growth phase and help systematically advance gold, volcanic-hosted massive sulphide (VHMS), and rare earth element (REE) exploration targets at the Malcolm project.
The company says the funds will underpin its next growth phase and help systematically advance gold, volcanic-hosted massive sulphide (VHMS), and rare earth element (REE) exploration targets at the Malcolm project
Proposed exploration targets include the flagship Calypso ‘Constance Lode’ new gold system discovery, the ‘critical’ REE mineral occurrences recently discovered at Malcolm and Mt Steward, and geological evaluations at the Mt George, Emu Egg, and Sunday-Picnic gold prospects.
Mt Malcolm reports the rights offer is set to close on 16 June 2023 and notes it is not underwritten. All new shares issued will rank equally with existing shares on issue, and the company will apply for quotation of the new shares.
Mt Malcolm Mines is an ASX-listed gold exploration company focused on its tenement package surrounding the Malcolm Mining Centre located 10km to 25km east of Leonora in Western Australia.
The Malcolm Gold Project covers a semi-contiguous land holding of 274km-square and consists of 9 major prospects including Mt George, Emu Egg, Germatong and Rabbit Warren South, Pig Well, Sunday-Picnic Shear Zone, Malcolm Dam, Malcolm Mining Centre, Mt Stewart, and Calypso.
The company says the tenement holdings exhibit a documented record of ‘significant’ gold production. Mt Malcolm also notes the Malcolm Mining Centre historically produced 47,200 ounces from ‘high-grade’ gold occurrences, the majority of which was sourced from the company’s tenure.
Images: Mt Malcolm Mines NL
