PriceSensitive

Magnetic Resources (ASX:MAU) begins week in trading halt

The Market Online Deal Room
ASX:MAU      MCAP $384.0M
22 November 2021 14:30 (AEDT)
Magnetic Resources (ASX:MAU) - Managing Director, George Sakalidis

Source: George Sakalidis/LinkedIn

Magnetic Resources (MAU) has begun the week in a trading halt while it plans the details of an upcoming capital raising.

The company will remain in the halt until November 24 or when more details are released, whichever occurs first.

MAU is yet to disclose how much it intends to raise or what it will use the funds for once received, whichever occurs first.

On November 17, MAU announced it had identified thick, high-grade intersections at the Lady Julie 4 tenement in Western Australia.

Initial reverse circulation (RC) drilling resulted in the identification of 28 metres at 2 grams per tonne (g/t) of gold from 36 metres, including 16 metres at 3.37 g/t gold and 40 metres at 1.79 g/t gold.

These intersections are encouraging and a follow-up program of 14 RC holes, covering 1720 metres, is currently in progress.

MAU last tapped investors for cash in April when it undertook a $2.6 million placement.

The funds were raised through the issue of roughly 1.83 million new shares to shareholders at $1.42 each.

MAU used the money to undertake further RC and diamond drilling, metallurgical work and resource and scoping studies at the Hawks Nest 9 and Lady Julie projects.

Shares in MAU last traded at $1.60 on November 19. The company has a $349 million market cap.

Related News