- Gateway Mining (GML) has raised $6 million to advance its Gidgee Gold Project in Western Australia
- The share placement will comprise more than 352.9 million shares at 1.7 cents each, and an additional free-attaching option which is subject to shareholder approval
- With the funds, GML plans to move forward with the next phase of drilling at its Gidgee Gold Project which is set to recommence in the coming weeks
- Following the raise, the company’s treasury position will sit at just over $9 million in cash and shares
- Shares in Gateway Mining remained steady today, November 1, closing at 1.8 cents each
Gateway Mining (GML) has raised $6 million to advance its Gidgee Gold Project in Western Australia.
The company entered a trading halt on October 28, pending details of the raise which have been announced today.
The money will be raised via a placement of around 352.9 million shares at 1.7 cents each with participants set to receive, subject to shareholder approval, free-attaching options on a one-for-two basis with each option exercisable at 3 cents and valid to December 2024.
The issue price represents an eight per cent discount to the 15-day volume weighted average price and a six per cent discount to the last closing price of 1.8 cents.
Gateway said the raise was strongly supported by both existing and new shareholders with bids exceeding $6 million.
In particular, directors Mark Cossom, Trent Franklin and Scott Brown have shown support for the placement and — also subject to shareholder approval — have agreed to invest a collective total of $272,625.
With the funds, the company plans to move forward with the next phase of drilling at its Gidgee Gold Project which is set to recommence in the coming weeks.
Moreover, the capital will assist with further technical studies, including first-pass metallurgical and geotechnical test work.
Following the raise, the company’s treasury position will sit at just over $9 million in cash and shares, which Managing Director Mark Cossom said puts Gateway in a strong position moving into 2022.
“Our aim is to build on the significant exploration success we have achieved over the past two years at Gidgee and maintain strong momentum moving forward,” he said.
“We expect to finalise and deliver a significant Mineral Resource upgrade in December.
“In parallel, we will resume drilling to test some of the exciting new targets we have announced recently, such as the Julias prospect, to build our growth pipeline for further resource growth into next year and beyond,” he continued.
Issue of the new shares is expected to occur on November 5, with shareholder approval for the shares to directors and issuing of attaching new options to be gained at a meeting which the company is in the process of organising.
Shares in Gateway Mining remained steady today, November 1, closing at 1.8 cents each.