PERTH (miningweekly.com) – Gold and copper explorer Magmatic Resources is hoping to raise A$4-million through a share placement and share purchase plan (SPP) to fund exploration work in New South Wales.
The junior has received binding commitments from institutional and professional investors for the placement of 30.206-million shares, at a price of 10c each, to raise an initial A$3-million.
The placement price represented a 9.1% discount to Magmatic’s last closing price, and a 15.2% discount to the company’s 10-day volume weighted average share price.
The shares will be issued under the company’s existing placement capacity and will not require shareholder approval.
In addition, Magmatic will also undertake an SPP, also priced at 10c a share, to raise a further A$1-million. The company would allow eligible shareholders the opportunity to subscribe for up to A$30 000 of additional shares in the company.
The SPP will open on November 25 and close on December 9.
The funds raised will be used on an expanded and accelerated drilling programme at the Myall project, as well as on exploration at other high priority targets.