- Gold Mountain (GMN) closes its significantly oversubscribed renounceable rights issue and raises $5.1 million
- A total of 270 million fully paid ordinary shares and 90 million new options will now be issued
- To accommodate the demand, Gold Mountain will undertake a follow-on placement to raise a nearly $282,000
- Upon completion of the follow-on placement, the company will have raised $5.4 million with the money to be used to fund exploration
- Shares in Gold Mountain are up 14.3 per cent on the market and are trading at 2.4 cents at 1:14 pm AEST
Gold Mountain (GMN) has closed its significantly oversubscribed renounceable rights issue and raised $5.1 million.
A total of 270 million new fully paid ordinary shares and 90 million new options, exercisable at four cents with expiry on February 16, 2023, will be issued.
To accommodate the demand, Gold Mountain will undertake a follow-on placement to raise a further $281,834 on the same terms as the rights issue.
A total of 14,091,700 new shares and 4,697,233 options will be issued to raise these funds.
Upon completion of the follow-on placement, Gold Mountain will have raised $5.4 million.
Gold Mountain announced it would be undertaking a rights issue in mid-July to raise money to fund exploration work and pay down its debts.
In particular, up to 8000 metres of drilling will be undertaken at the Mt Wipi target and a detailed airborne geophysical survey will be carried out at the Wabag Project.
CEO Tim Cameron commented on the placement and how Gold Mountain would use the funds.
“I would like to thank our shareholders for the support they have shown during this rights issue, demonstrating their continued commitment to the company and enthusiasm for our future as we progress targeted exploration in the highly prospective Wabag Project,” Mr Cameron said.
“In the near term I am particularly excited about the drilling program at our six drill ready targets in Mt Wipi and uncovering the potential at both Lombokai Creek and the new target that has just been identified at Mt Nemai.”
Shares in Gold Mountain were up 14.3 per cent on the market and were trading at 2.4 cents at 1:14 pm AEST.