Gold Mountain (ASX:GMN) shares soar on $1.56m placement to fund exploration and due diligence

• Gold Mountain (GMN) will raise $1.56 million through a placement to support exploration and due diligence activities
• The company will issue 260 million new shares to private investors at 0.6 cents per share, which is equal to its last traded price
• The placement is not subject to shareholder approval and shares will be issued under the company’s placement capacity
• The proceeds will fund exploration at Gold Mountain’s Wabag project in Papua New Guinea, due diligence on lithium projects held by Mars Mines, and general working capital
• GMN shares soared 50 per cent higher to 0.9 cents at 11:18 am AEST

Gold Mountain (GMN) shares have jumped on the news it will raise $1.56 million through a share placement to support exploration and due diligence activities.

The company will issue 260 million new shares to private investors at 0.6 cents each to raise the funds, which is equal to the GMN’s last traded price.

The shares are not subject to shareholder approval and will be issued under the company’s placement capacity.

The proceeds will fund GMN’s exploration plans at the Wabag project in Papua New Guinea, its due diligence on lithium projects held by Mars Mines, and general working capital.

Executive Director Tim Cameron said he was pleased with the support seen for the placement from new and existing investors.

“We believe the strong demand for this capital raising is a testament to the quality of the company’s Wabag project in PNG and the proposed acquisition of the Brazilian lithium projects,” Mr Cameron said.

Gold Mountain shares soared 50 per cent higher to 0.9 cents at 11:18 am AEST.