- Musgrave Minerals (MGV) has raised $6 million to advance drilling at the high-grade Starlight gold discovery within its Cue Project
- More than 57 million shares were issued to investors at a price of 10.5 cents per share
- As well as the Starlight discovery, money will also go towards the Break of Day deposit and for general working capital
- Following the placement, Musgrave will have a cash balance of approximately $8.4 million
- Musgrave has ended the day 8.70 per cent in the green with shares trading for 12.5 cents each
Musgrave Minerals (MGV) has raised $6 million to advance drilling at the high-grade Starlight gold discovery within its Cue Project.
A total of 57,142,858 shares were issued to corporate, professional, institutional and sophisticated investors at a price of 10.5 cents per share.
Canaccord Genuity and Veritas Securities acted as joint Lead Managers and joint book runners.
As well as the Starlight discovery, money will also go towards the Break of Day deposit and for general working capital.
“The funding will allow Musgrave to advance drilling of the new high-grade Starlight gold discovery and test other similar targets on the Cue Project,” Managing Director Rob Waugh commented.
“Diamond drilling will follow, leading to a scheduled resource update for Break of Day and Starlight late in Q3 2020,” he said.
Following the placement, Musgrave will have a cash balance of approximately $8.4 million.
Musgrave’s Cue Project is located in Western Australia and is host to the Break of Day deposit, which in turn hosts the Starlight discovery.
Mineralisation at Starlight is believed to be located in a 100-metre long east-west trending zone that dips steeply to the south.
The mineralisation remains open up and down dip, and it is yet to be drill tested near surface.
Significant results from this discovery include four metres at 65.9g/t gold from 70 metres including one metre at 173.6g/t gold, and two metres at 6.2g/t gold from 110 metres.
Reverse circulation drilling will begin at the Starlight discovery in the next two weeks. This will then be followed-up by diamond drilling.
Musgrave has ended the day 8.70 per cent in the green with shares trading for 12.5 cents each in a $46.68 million market cap.