- Magnum Mining and Exploration (MGU) has resumed trading in order to announce a small placement of company shares
- The company has already received commitments to raise $250,000 through the placement of approximately 8.3 million shares at three cents each
- Magnum’s placement will go towards the potential development of the company’s Gravelotte emerald project in South Africa
- The company will use the proceeds to finalise processing testing, advance pre-development activities, and pay general expenses
- On the back of the news, Magnum Mining and Exploration shares have spiked 14.3 per cent, trading for an even four cents each
Magnum Mining and Exploration (MGU) has resumed trading in order to announce a small placement of company shares.
The company entered a trading halt on July 10, in anticipation of an announcement about a capital raising. At the time, the announcement did not disclose what amount would be raised, or for what purpose.
The mineral exploration company’s small placement has already received commitments to raise $250,000 before costs.
Through the placement, Magnum will issue 8,333,333 shares at three cents per share. This share price comes at a 14 per cent discount to both the company’s last traded price, and the volume-weighted average price over the 15 days prior to the trading halt.
Each share issued through the placement will come with a free attaching listed option. Options will be exercisable for five cents no later than September 30, 2022.
The placement shares will be issued without disclosure to sophisticated investors in Australia. They will also rank equally with fully paid ordinary shares in the company which are currently on issue.
Magnum has indicated proceeds from the placement will go towards the potential development of the Gravelotte project. The project is an emerald mining play located in the Limpopo province of South Africa.
The company currently owns 74 per cent of the project and is working on its commercial development. Currently, Gravelotte is in the final stages of test work and should be ready for development around 2020’s final quarter.
The funds raised from Magnum’s placement will be used for a variety of purposes at the project. This includes finalising the current processing testing, advancing ongoing pre-development activities, and paying corporate and administration expenses.
On the back of the news, Magnum Mining and Exploration shares have spiked 14.3 per cent, trading for an even four cents each at 12:31 pm AEST.