ASX-listed Mustang Resources will raise about A$2.4-million through a private placement to advance its Caula vanadium/graphite project, in Mozambique, and for general working capital.
Of this amount, A$2.18-million will be raised through the issue of about 158.6-million shares at $0.01374 apiece.
A further A$258 000 will be raised from Mustang’s management and directors.
Settlement of the placement is expected on August 20.
The Caula project has established a Joint Ore Reserves Committee-compliant resource of 22-million tonnes at 0.37% vanadium and 13.4% graphite, for 81 600 t of vanadium and 2.93-million tonnes of graphite, respectively.