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- Medallion Metals (MM8) receives commitments to raise $4.8 million through a heavily oversubscribed share placement
- The shares will be issued in two tranches to both sophisticated investors and several of Medallion’s directors
- The company says it will emerge with a cash balance of over $8 million to primarily fund its Ravensthorpe Project
- Located in southern Western Australia, the project has an existing mineral resource estimate of 8.8 million tonnes at 2.4 grams per tonne (g/t) gold
- Shares in Medallion Metals are down 13.33 per cent to $0.20 as of 2:44 pm AEDT
Medallion Metals (MM8) has received commitments to raise $4.8 million through a heavily oversubscribed share placement.
The company says it will emerge with a strengthened cash balance of over $8 million to accelerate exploration efforts and drill programs, primarily at its Ravensthorpe Gold Project.
Located in southern Western Australia, the project has an existing mineral resource estimate of 8.8 million tonnes at 2.4 grams per tonne (g/t) gold, representing a total of 674,000 gold ounces.
The placement consists of two tranches, 24.7 million shares at 19 cents per share to sophisticated investors and 394,000 shares at the same price to company directors.
The issue price marks a 9.4 per cent discount to medallion’s 15-day volume weighted average price of 21 cents.
Once the placement is complete, Medallion intends to rapidly advance its work at Ravensthorpe. Of approximately 26,000 metres of drilling, a further 9000 metres remains outstanding.
The company said it expects a steady release of assays, along with the continuation of current drilling, to continue well into 2022.
According to Managing Director Paul Bennett, the capital raising is critically important to maintain Medallion’s growth ambitions.
“We are now in a strong position to maintain a permanent drill presence at Ravensthorpe and keep our outstanding team together to continue to grow the resource and test the multiple regional opportunities,” Mr Bennett said.
Shares in Medallion Metals are down 13.33 per cent to $0.20 as of 2:44 pm AEDT.
