- Magnum Mining and Exploration (MGU) has entered back-to-back trading halts ahead of a capital raise and project acquisition
- MGU’s project portfolio currently includes its 74 per cent-owned Gravelotte Project which is located in the Limpopo province of South Africa
- The project and surrounding areas are known to be highly prospective for emeralds – having produced almost 113 million carats between 1929 and 1982
- While this project remains a key focus for the company, it seems Magnum has its sights set on another acquisition
- Company shares last traded for 4.2 cents on Tuesday, October 6
Magnum Mining and Exploration (MGU) has entered back-to-back trading halts ahead of a capital raise and project acquisition.
The company will remain in the trading halts until Wednesday, October 14, unless details of the capital raise and acquisition are announced earlier.
Currently, MGU’s project portfolio consists of its 74 per cent-owned Gravelotte Project which is located in the Limpopo province of South Africa.
In 1927, emeralds were discovered at the province and, since then, the area has been explored by several companies. Between 1929 and 1982 the Gravelotte Project and surrounding areas produced almost 113 million carats of emerald.
While this project remains a key focus for the company, it seems Magnum has its sights set on another acquisition.
At the end of H1 2020, Magnum had just $13,837 in cash and cash equivalents. Soon after the close of the 2020 financial year, the company raised $250,000 through a placement to sophisticated investors in Australia.
It was clear Magnum needed to strengthen its balance sheet and needed the extra funds for various pre-development activities for its Gravelotte Project.
So far it is uncertain how much the company is looking to raise or which project it’s looking to acquire.
Company shares last traded for 4.2 cents on Tuesday, October 6.