- Meteoric Resources (MEI) gets firm commitments to raise $1.7 million to fund ongoing activities at its Palm Springs and Juruena projects
- The $1.7 million placement includes the issue of up to 100 million shares, priced at 1.7 cents, to sophisticated and professional investors
- In addition, Meteoric will launch a fully underwritten share purchase plan (SPP) entitlement offer to raise another $1.02 million
- The money will be used for a scoping study at the Juruena project and to undertake mining studies for open pit and underground mining at the Butchers Creek deposit
- Company shares are down 5.26 per cent to trade at 1.8 cents
Meteoric Resources (MEI) has received firm commitments to raise $1.7 million to fund ongoing development in Brazil and Australia.
The placement will comprise the issue of up to 100 million shares to sophisticated and professional investors at 1.7 cents. The issue price is an 11.8 per cent discount to the last traded price of 1.9 cents.
The placement also comes with 20 million attaching options on the basis of one option for every five placement shares. The options are exercisable at 2.4 cents and expire on May 28, 2023.
In addition to the placement, Meteoric will launch a fully underwritten share purchase plan (SPP) entitlement offer to raise another $1.02 million.
As part of the SPP, the company will issue up to 60 million ordinary shares together with 12 million attaching options on the same basis and expiry date as the placement.
Specifically, Meteoric Resources will use the money to complete a scoping study at the Juruena gold project in Brazil and to undertaking mining studies for open pit and underground mining at the Butchers Creek deposit.
Butchers Creek is part of the Palm Springs gold project in Western Australia. The deposit has recently generated several targets through anomalous soils and rock chips that the company plans to follow up on with drilling in 2022.
Managing Director Andrew Tunks commented on MEI’s plans for its gold exploration plays.
“At Juruena we are completing a full Scoping Study with Brazilian Mining Group GE 21. This will include a revisit of the 2021 Resource to remodel for open pit mining as well as plant flow sheet design, environmental considerations and an economic model,” he said.
“Results from the scoping study will be presented to the market in Q1 2022.
“At Palm Springs we had a strong year of exploration results confirming our mineralisation model. This is crucial as it will drive both our development studies and our 2022 exploration. We have made strong progress with the Local Indigenous groups and expect to have some exciting new areas available for exploration in the next field season.”
Company shares were down 5.26 per cent to trade at 1.8 cents at 1:12 pm AEDT.