Join our daily newsletter At The Bell to receive exclusive market insights
- Metals explorer Mithril Resources (MTH) has announced the closure of its rights issue, and the lapse of performance rights issued to two company directors
- The one-for-one non-renounceable rights issue was aimed at raising over $2 million for exploration at the Copalquin gold-silver project in Mexico
- Mithril is still in the process of acquiring Sun Resources, which holds an exclusive option to earn up to a 100 per cent interest in the Copalquin project
- Meanwhile, performance rights totalling 100 million shares have lapsed and been disposed of, as per the conditions set out and approved by shareholders
- New performance rights, on nominally the same terms, are expected to be issued upon completion of the company’s Sun acquisition
- Mithril Resources ended Friday’s session 9.1 per cent higher at a price of 1.2 cents per share
Metals explorer Mithril Resources (MTH) has announced the closure of its rights issue, and the lapse of performance rights issued to two company directors.
Rights issue
The one-for-one non-renounceable rights issue was aimed at raising between $1.6 million and $2.46 million, at an issue price of 0.5 cents per share.
The money raised will be primarily used to fund exploration at Mithril’s Copalquin gold-silver project located in the Sierra Madre Trend in western Mexico.
Mithril is still in the process of acquiring Sun Resources, which holds an exclusive option to earn up to a 100 per cent interest in the Copalquin project.
The Sun deal is expected to close in late May. Exploration at the promising gold-silver prospect should commence immediately thereafter, given the Mexican government’s lifting of restrictions on mining activity as of May 18.
Performance rights lapse
Performance rights totalling 100 million shares have lapsed and been disposed of as per the conditions set out and approved by shareholders on February 12.
Company directors Adrien Wing and Stephen Layton held 50 million rights each but failed to satisfy conditions pertaining to the rights issues.
New performance rights, authorised by shareholders on May 13, are expected to be issued upon completion of the Sun acquisition.
The terms are nominally the same as the lapsed rights issue, except for a reduction in the market capitalisation milestone from $50 million to $40 million.
This means the rights will be issued contingent on two factors surrounding the acquisition.
Firstly, Mithril must attain a market capitalisation equal to or greater than $40 million for 20 consecutive trading days on which the securities of the company traded.
And secondly, the Copalquin project must be found to hold an inferred JORC resource of at least 5.443 million tonnes at a combined gold equivalent grade of not less than four grams per tonne for 700,000 ounces of gold.
Mithril Resources ended Friday’s session 9.1 per cent higher at a price of 1.2 cents per share.
