- BMG Resources (BMG) has completed a $4 million financing following shareholder approval for the proposed acquisition of Oracle Mining
- The financing included a $1 million share purchase plan, which received $1.6 million in subscriptions, and a $3 million placement to institutional investors
- Shareholders of BMG Resources showed their support for the takeover of Oracle in a general meeting yesterday, which is expected to close on Friday, October 9
- The company is now preparing for a 5000-metre reverse circulation and diamond drill program at the Abercromby Project in Western Australia
- BMG Resources (BMG) closed in the grey for 1.1 cents each
BMG Resources (BMG) has completed a $4 million financing following shareholder approval for the proposed acquisition of Oracle Mining.
The financing consisted of two components. Under the first, a $1 million share purchase plan, the Perth-based company issued 22.52 million shares at a price of $0.05 each, bringing in subscriptions for just over $1.6 million.
As outlined in a prospectus dated August 28, eligible shareholders were able to subscribe for between 20,000 and 200,000 shares, which will be issued on Friday, October 9. As the company won’t be accepting the oversubscriptions, any applications above this amount will be refunded.
Under the second component, BMG Resources received shareholder approval to raise a further $3 million by issuing 60 million shares to certain institutional and sophisticated investors.
The financing comes ahead of BMG Resources’ proposed acquisition of Oracle Mining, which drew support from shareholders in a special meeting held yesterday.
Pursuant to a binding agreement dated August 17, BMG Resources will wholly acquire Oracle, along with three gold projects, by transferring a package of shares worth approximately 37 per cent of BMG Resources’ total issued and outstanding capital.
All located in Western Australia, the Abercromby, Invincible and South Boddington projects are expected to provide the company with access to a portfolio of highly prospective assets in several world-class gold jurisdictions.
Bruce McCracken, Managing Director of BMG Resources, said the decision to acquire Oracle came after an extensive review of various investment opportunities that focused on strengthening the company’s exposure to minerals with favourable market dynamics.
“Our immediate focus at Abercromby is on a number of existing thick high-grade gold intercepts, as well as down-dip and infill drilling that we intend to leverage with the aim of progressing towards a maiden resource,” he added.
The acquisition of Oracle is anticipated to close on October 9, after which a 5000-metre reverse circulation and diamond drilling program will begin at the Abercromby Project, focused on testing the scale and scope of known mineralisation.
BMG Resources (BMG) closed in the grey for 1.1 cents each.