- Middle Island Resources (MDI) is looking to raise $4 million to fund drilling at its Sandstone gold project in WA
- Approximately 363.6 million shares will be issued to institutional and sophisticated shareholders at a price of 1.1 cents per share
- The money raised will be used to undertake the next phase of exploration and resource drilling at Sandstone
- Works include a 13,000-metre drilling program to extend recent discoveries as well as increasing and upgrading the mineral resource estimate
- Middle Island has dropped 7.69 per cent and shares are trading for 1.2 cents each
Middle Island Resources (MDI) is looking to raise $4 million to fund drilling at its Sandstone gold project in WA.
Approximately 363.6 million shares will be issued to institutional and sophisticated shareholders at a price of 1.1 cents per share.
This price represents a 15.4 per cent discount to the last closing price and a 17.3 per cent discount to the five-day volume-weighted average price.
Shares will be allocated on May 20.
The money raised from the placement, as well as Middle Island’s existing cash reserves, will be used to undertake the next phase of exploration and resource drilling at Sandstone.
Works include a 13,000-metre reverse circulation (RC) and diamond drilling program to extend the recent discoveries of McClaren, Plum Pudding, Old Town Well, and McIntyre, and increasing and upgrading the mineral resource estimate.
Some money will also be used for general working capital and to cover the costs associated with the offer.
“The 2020 phase one RC drilling program, for which some 70 per cent of assay results have been received and reported, has proved remarkably successful with four new gold deposits identified [McLaren, McIntyre, Old Town Well, and Plum Pudding], Managing Director Rick Yeates commented.
“Given the extraordinary success of the 2020 drilling campaign to date, proceeds of the equity raising will allow the company to embark on a, necessarily substantially expanded, phase two drilling campaign of at least 13,000 metres,” he said.
Middle Island has dropped 7.69 per cent and shares are trading for 1.2 cents each at 12:07 pm AEST.