PERTH (miningweekly.com) – ASX-listed Mako Gold will raise $3.25-million through the placement of 65-million new shares over two tranches.
The first tranche of the placement will consist of 11.3-million shares, priced at 5c each, and will be conducted under the existing placement capacity to raise an initial A$600 000.
The second placement of 53.7-million shares, to raise a further A$2.65-million, will be subject to shareholder approval at a general meeting scheduled for July.
The offer price of 5c a share represented an 18% discount to Mako’s last trading price on May 25, and a 21.9% discount to its five day volume weighted average share price.
“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of Mako’s flagship Napie gold project and its exploration team,” said MD Peter Ledwidge on Thursday.
“This capital raising provides us with balance sheet support for our extensive exploration programme at Napie that aims to extend the shallow, high-grade mineralisation discovered to date and test multiple highly prospective regional prospects.
“With a strike length of 30 km, multiple mineralised structures and less than 10% explored to date, we believe the Napie has potential to host multimillion-ounce gold deposits.”
Drilling is expected to start in early July and will continue for the rest of the year.