- Metalicity (MCT) is raising $3.65 million through a fully underwritten rights issue
- Eligible participants will also receive one free-attaching option for every three shares subscribed for which are exercisable at one cent each within two years
- The money is being used for drilling at the Kookynie gold project in WA and will focus on new targets and potential extensions as well as the Mulga Plum and Wandin prospects
- MCT shares have ended the day 14.3 per cent in the red and closed at 0.6 cents
Metalicity (MCT) is undertaking a two-for-seven non renounceable rights issue to raise $3.65 million.
Eligible participants will also receive one free-attaching option for every three shares subscribed for. The options are exercisable at one cent each and expire within two years.
Up to 730,150,287 shares and 243,383,429 options will be offered under the rights issue and eligible shareholders may be able to apply for additional securities in excess of their entitlement.
The rights issue is fully underwritten by Canaccord Genuity.
Metalicity will use the funds to continue drilling at the Kookynie gold project in WA. Drilling will focus on new targets and potential extensions to the Leipold-McTavish-Champion golden corridor over a combined potential strike of three kilometres.
The company recently completed 9000 metres of drilling ahead of a planned program at the Mulga Plum and Wandin prospects which the rights issue will also fund.
“We continue to look for opportunities to accelerate the development of this project and create shareholder value as we look to expand the prospective size of our gold footprint at Kookynie,” Managing Director Justin Barton said.
“It is therefore exciting that this rights issue gives our long standing and newly acquired shareholders the first opportunity to participate in this expanded programme, which has the potential to be a step change for the project.”
Subject to finalising a contract and securing approvals, drilling at Mulga Plum and Wandin is expected to commence shortly.
MCT shares ended the day 14.3 per cent in the red and closed at 0.6 cents.