Miramar Resources Ltd (ASX:M2R) is raising around $2 million in a placement and fully underwritten, non-renounceable rights issue for eligible shareholders.
Funds from the $1.5 million placement to sophisticated investors and the $500,000 rights issue will be used for upcoming drilling at the company’s 100%-owned Whaleshark and Bangemall projects in the Ashburton and Gascoyne regions of WA.
“Over the last two-and-a-half years, whilst outlining a significant amount of gold near Kalgoorlie, we also developed highly prospective targets at Whaleshark, for IOCG mineralisation, and in the Bangemall region for nickel-copper-PGEs, each capable of hosting a significant deposit,” Miramar executive chairman Allan Kelly said.
“With the recent successful EIS funding application, the raising means the company is now well-funded to complete planned drilling programs at Whaleshark and Mt Vernon.”
Placement details
Under the placement, M2R will issue 50 million fully paid ordinary shares at $0.03 per share to raise $1.5 million (before costs). The issue price represents a 38.8% discount to the company’s 10-day volume weighted average price of $0.049.
The placement shares will be issued in two tranches.
Rights issue details
Miramar intends to raise approximately $550,000 through a pro-rata non-renounceable rights issue of one share for every five held by an eligible shareholder on the record date at an issue price of $0.03 per share.
The rights issue is fully underwritten (subject to entry into a formal underwriting agreement) by Westar Capital, which is also acting as lead manager.