- Musgrave Minerals (MGV) has received firm commitments to raise $16 million via a placement
- More than 44.4 million shares will be issued to corporate, institutional, professional and sophisticated investors at 36 cents
- This price represents a 9.6 per cent discount to the 15-day volume-weighted average price
- Musgrave will use the money to begin a pre-feasibility study at the Break of Day and Lena deposits, and complete an initial drilling program on high-priority targets
- The company will also undertake a share purchase plan with aims to raise up to $2 million
- Eligible shareholders will be able to acquire up to $30,000 worth of shares at 36 cents — the same price as the placement
- Musgrave is down 9.41 per cent on the market and shares are trading at 38.5 cents
Musgrave Minerals (MGV) has received firm commitments to raise $16 million via a placement.
The company entered a trading halt on December 10, but did not reveal how much it intended to raise or what the funds would be used for.
All up, 44,444,445 shares will be issued to corporate, institutional, professional, and sophisticated investors at 36 cents.
This price represents a 15.3 per cent discount to Musgrave’s last trading price and a 9.6 per cent discount to the 15-day volume-weighted average price.
Shares are expected to be issued on or around December 18.
Musgrave will use the money from the placement to begin a pre feasibility study at the Break of Day and Lena deposits, and complete an initial drilling program on high-priority targets.
Funding will also be used to progress resource drilling at Break of Day and Lena and for general working capital.
“Through accelerated exploration and a focus on resource growth, we can ensure we unlock the value of the project as a strategic asset,” Managing Director Rob Waugh said.
“This work together with the pre-feasibility study on the existing high-grade, near-surface Break of Day resource and the adjacent Lena deposit, will maximise our ability to create value for shareholders through discovery, resource growth and project development,” he added.
Musgrave will also undertake a share purchase plan with aims to raise up to $2 million.
Eligible shareholders will be able to acquire up to $30,000 worth of shares at 36 cents — the same price as the placement.
The plan will open on December 18 and close on January 15. Shares will be issued on January 22 and begin trading on the ASX on January 25.
Ultimately, Musgrave has the right to accept oversubscriptions and scale back applications.
Company shares are down 9.41 per cent on the market and trading at 38.5 cents at 12:20 pm AEDT.