Magnetic Resources NL has announced that it received binding commitments for approximately $3.2 million via a placement of approximately 7.21 million in new shares at an issue price of $0.45 per share, together with a one to three free attaching option exercisable at $0.68 on or before two years from the date of issue.
Following the completion of the placement, the company will be well-funded with over $5.5 million in cash to help advance its gold projects.
The placement, which saw interest mainly from existing shareholders and some new shareholders, was supported by related parties whose participation will be subject to shareholder approval.
The placement price represents an approximate 10 per cent discount to the last closing price of $0.495 per share.
All shares and free attaching options will be issued within the company’s existing 15 per cent placement capacity under Listing Rule 7.1.
The funds raised will support the Laverton Project in Western Australia (WA) to increase and upgrade the resource at Lady Julie North 4, complete early work studies, publish feasibility studies and complete initial preparations for the commencement of mining and general working capital.
Novus Capital Limited acted as lead manager to the placement and will receive a 2 per cent management fee and a 5 per cent brokerage fee.
Commenting on the effort, Magnetic Resources Managing Director George Sakalidis said the company is expanding the Laverton Project’s gold deposits with a desire to move towards mining.
“I would like to thank existing shareholders and welcome new shareholders who participated into this well-supported capital raising,” he added.
Sakalidis noted that because of the funding, the company can now complete the advancement of its projects and ultimately move towards production.
The settlement of new shares is expected to occur on 9 May, with allotment to follow on 10 May.
