- Mako Gold (MKG) is raising $3.25 million to fund exploration at its flagship Napié Gold Project, in West Africa
- Through the placement, the company will issue 65 million shares at five cents each, over two tranches
- The second tranche will require shareholder approval at the company’s upcoming general meeting in early July
- The company will use the funds to further outline mineralisation at the project, test new targets and develop a maiden mineral resource estimate
- Mako Gold shares closed 10.8 per cent in the green on Friday, trading for 7.2 cents per share
Mako Gold (MKG) is raising $3.25 million to fund exploration at its flagship Napié Gold Project, in West Africa.
The company has received binding commitments for a two-tranche placement, valued at $3.5 million. Through the placement, the company will issue 65 million shares at five cents each, over two tranches.
The first tranche of the placement amounts to 11.3 million shares and does not require shareholder approval.
However, the larger second tranche, at 53.7 million shares, will require shareholder approval at the company’s upcoming general meeting in early July.
The company will use to proceeds to fund exploration at its flagship Napié Project, in West Africa. Mako currently owns 51 per cent, along with mining companies Perseus Mining and Occidental Gold.
Through the earn-in agreement, Mako can earn up to 75 per cent interest, after producing a feasibility study for the site.
Mako’s exploration team have previous success in the region, discovering a 2.6 million ounce gold reserve for Orbis Gold.
Specifically, the company will use the funds to extend the existing high-grade material at the site, test new targets and develop a maiden mineral resource estimate.
Mako’s Managing Director, Peter Ledwidge believes the recent demand from investors is a strong endorsement for the project and its exploration team.
“This capital raising provides us with balance sheet support for our extensive exploration program at Napié that aims to extend the shallow, high-grade mineralisation discovered to date and test multiple highly prospective regional prospects,” Peter noted.
“We are pleased to welcome a number of new sophisticated and institutional shareholders and thank our existing shareholders for their continued support,” he said.
Mako Gold shares closed 10.8 per cent in the green on Friday, trading for 7.2 cents per share.