- Mako Gold (MKG) receives binding commitments to undertake a two-phase placement to raise $10 million
- Up to 125 million new fully paid ordinary shares will be issued to existing shareholders and institutional investors at 8 cents
- Shares under phase one are expected to settle on July 14 while shares under phase two are expected to settle in mid-August, subject to shareholder approval
- Mako will use the money to accelerate exploration at its Napié Gold Project, complete infill drilling at the Tchaga Prospect and acquire new projects
- Shares in Mako are down 3.3 per cent on the market this morning and are trading at 8.8 cents at 10:28 am AEST
Mako Gold (MKG) has received binding commitments to undertake a two-phase placement to raise $10 million.
The company entered a trading halt on July 6 but did not disclose how much it intended to raise or what it would use the funds for.
Up to 125 million new fully paid ordinary shares will be issued to existing shareholders and international investors at 8 cents.
This price represents a 12.1 per cent discount to Mako’s close on July 5 of 9.1 cents, a 7.8 per cent discount to the five-day volume-weighted average price of 8.68 cents and a 7.5 per cent discount to the 15-day volume-weighted average price of 8.65 cents.
Phase one of the placement will see the issue of up to 64.3 million shares to raise $5.1 million.
Phase two, which is subject to shareholder approval, will see up to 60.7 million shares issued to raise the remaining $4.9 million.
Shares under phase one are expected to settle on July 14 while shares under phase two are expected to settle in mid-August.
North American resource fund Dundee Goodman Merchant Partners subscribed for roughly 37.8 million shares, equating to $3 million, and will emerge with a 9.9 per cent holding in Mako’s issued capital.
Mako also received binding commitments from two German Institutions to subscribe for around 41.25 million shares.
Both companies will collectively emerge with a 12.7 per cent holding in Mako’s issued capital.
Mako will use the money to accelerate exploration at its Napié Gold Project, complete infill drilling at the Tchaga Prospect, undertake exploration at the Korhogo Project and acquire potential new projects.
Managing Director Peter Ledwidge is pleased with the support received and is keen to use the funds to speed up exploration.
“We are extremely pleased by the overwhelming support from quality domestic and international institutional investors. Attracting such high-quality institutional investors speaks to the potential of the project and experience of our team,” Mr Ledwidge said.
“Proceeds of the placement will strengthen Mako’s balance sheet and provide a pathway to accelerate exploration at the Tchaga Prospect on the Napié Project as we move towards and beyond a maiden mineral resource estimate.”
“The funds raised will also allow us to implement significant drill programs on other prospects at Napié and to fast-track exploration on our Korhogo Project.”
Shares in Mako were down 3.3 per cent on the market this morning and trading at 8.8 cents at 10:28 am AEST.