- Mt Monger Resources (MTM) taps investors for $3 million to fund the first round of drilling at its recently-purchased Pomme project in Quebec, Canada
- The company plans to raise the money through the issue of 30 million shares to professional and sophisticated investors at 10 cents per share
- In addition to funding exploration at the Pomme REE and niobium project, the fresh capital is also set towards exploration in Western Australia
- The raise will be completed in two tranches, the second of which is subject to shareholder approval to be sought at a meeting in the coming weeks
- MTM shares are up 40.5 per cent, trading at 15 cents at 2:41 pm AEDT
Mt Monger Resources (MTM) has tapped investors for $3 million to fund the first round of drilling at its recently-purchased Pomme project in Quebec, Canada.
The company has launched a two-tranche share placement under which it plans to issue 30 million shares all up to professional and sophisticated investors at 10 cents per share.
This price represents a 4.8 per cent discount to MTM’s last closing price on February 23.
Under the first tranche, MTM will issue 12.4 million shares to raise the initial $1.24 million under its existing ASX listing rule and capacity.
It hopes to raise the additional $1.76 million in tranche two, through the issue of 17.6 million shares, subject to shareholder approval.
MTM Managing Director Lachlan Reynolds said the company was “very pleased” with the level of demand received for the placement, which he said validated the acquisition of Pomme.
“Proceeds from the placement will enable the company to rapidly progress drilling and metallurgical testwork at the Pomme project, planning for which has already begun and will accelerate from early March when I travel to site,” Mr Reynolds said.
The company’s first round of work at the project is aimed at providing a more comprehensive geological evaluation of the Pomme carbonatite intrusion and assessing the extent, grade and continuity of the mineralisation in the area.
Subject to statutory permitting, and access constraints due to winter conditions, it is envisaged that drilling will begin in April or May this year.
In the coming weeks, Mt Monger will convene a meeting of shareholders to seek approval for the tranche two placement shares and options to be issued under the placement. The company expects to issue the tranche two shares in early April.
The shares under tranche one are expected to be issued on or about Monday, March 6.
MTM shares were up 40.5 per cent and trading at 15 cents at 2:41 pm AEDT.