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- Magmatic Resources (MAG) has obtained binding commitments from a range of investors for a $5 million capital raising
- The placement is made up of the issue of 41,666,670 new fully paid ordinary shares at an issue price of 12 cents per share
- Funds raised via the placement will go towards progressing the company’s exploration activities across its wholly-owned East Lachlan copper-gold portfolio
- Allotment of the new shares is planned for 12 March
- Magmatic Resources is in the grey, last trading at 14.5 cents
Magmatic Resources (MAG) has obtained binding commitments from a range of investors for a $5 million capital raising.
The placement is made up of the issue of 41,666,670 new fully paid ordinary shares at $0.12 per share.
The placement pricing represents a 17.2 per cent discount to Magmatic’s last closing price of $0.145 per share and a 19.8 per cent discount to the 10-day VWAP of roughly $0.15 per share.
Euroz Hartleys and Plutus Capital Advisory acted as joint lead managers for the placement and will be paid a 6 per cent fee on relevant proceeds received, plus four million options exercisable at a 40 per cent premium to the five day VWAP.
Funds raised via the placement will go towards progressing the company’s exploration activities across its wholly-owned East Lachlan copper-gold portfolio.
This will include drill testing of multiple gold-copper targets in the northern Molong Belt at the Wellington North Project, located along strike from Australia’s largest gold producer at Cadia East, plus the drill testing of multiple copper-gold targets at the Myall Copper-Gold Project. The Parkes Gold Project will also be drill tested for multiple orogenic gold targets located along strike from the Tomingley Gold Operations.
Additionally, funds may also be used for other exploration activities and general working capital.
“We are excited by the opportunity this capital raising provides Magmatic to be able to accelerate and expand our upcoming drilling programs across multiple high priority targets in the World Class East Lachlan gold-copper province,” said Magmatic’s Managing Director, Peter Duerden.
Allotment of the new shares is planned for 12 March.
Magmatic Resources is in the grey, last trading at 14.5 cents at 3:20 pm AEDT.
