- Marmota (MEU) has raised $6.5 million for its Aurora Tank gold discovery in South Australia
- The company issued over 122 million shares for 5.3 cents per share to institutional and sophisticated investors
- The placement had strong demand and was oversubscribed within hours of opening on Friday morning
- Funds will be used to speed up the development of the company’s Aurora Tank gold discovery and to purchase potential tenements surrounding the project
- Marmota is aiming to commence its largest-ever reverse circulation drilling program at Aurora by next week
- On market close, Marmota is down 12.7 per cent, while shares are trading for 5.5 cents per share
Marmota (MEU) has raised $6.5 million for its Aurora Tank gold discovery in South Australia.
The company issued over 122 million shares for 5.3 cents per share to institutional and sophisticated investors. The placement includes one attaching option for every two ordinary shares, at 10 cents each, with a two-year expiry.
Proceeds from the placement will be used to speed up the development of the company’s Aurora Tank gold discovery and to purchase potential tenements surrounding the project.
The placement had strong demand and was oversubscribed within hours of opening on Friday morning.
“Marmota is delighted with the interest shown in the company by investors,” Chairman Dr Colin Rose said.
The company also said that the team has departed Adelaide and is heading to Aurora Tank. The new semi-permanent camp is on its way to the project via a road train.
Colin said the new camp should be installed by the weekend with drilling to follow immediately after.
In April this year, Marmota reported outstanding high-grade results, with gold grading up to 74g/t.
“Marmota has recently received outstanding high-grade gold intersections at Aurora Tank,” Colin told the market.
“We now have ahead of us our largest and potentially most interesting and exciting drill program to date. We are lucky to have a superb team of geologists successfully advancing that discovery,” he added.
The program is the largest-ever reverse circulation drilling program at the project and includes 85 holes at an average depth of 88 metres, for a total 7500 metres.
Our financial position is now the strongest that I can ever recall it being, and we look forward to expediting our operational pathway for the benefit of our shareholders,” Colin said.
On market close, Marmota is down 12.7 per cent and is trading for 5.5 cents per share.