Moho Resources Ltd (ASX:MOH) has raised $793,000 through a share placement and $4 million from the sale of the East Sampson Gold Project to Mineral Mining Services Pty Ltd.
This additional funding will go toward new opportunities as well as ongoing exploration across Moho’s various projects, which offer gold, nickel, copper, rare earth elements (REE) and platinum group element (PGE) potential.
The placement was offered at $0.005 per share, with company directors subscribing for $120,000 in shares, subject to shareholder approval.
Details of East Sampson sale
Moho has entered into a binding agreement to sell the East Sampson Project for an initial payment of $1 million to be followed by up to $3 million in deferred cash payments contingent on gold production milestones.
MOH will receive $500,000 at 10,000 ounces produced and further identical payments at the 15,000-, 20,000- and 25,000-ounce milestones, with a final payment of $1 million at 30,000 ounces produced.
East Sampson currently holds a mineral resource estimate of 246,000 tonnes at 2.5 g/t gold for 21,600 ounces of gold at a 0.5 g/t gold cut-off.
The current resource only accounts for a portion of the project’s potential.
Moho also produced a conceptual exploration target within the current resource boundary of between 3,000 and 3,500 ounces of gold and estimates there is potential for 4,000 ounces of gold for every 20 metres of depth below the current resource.
With the sale of East Sampson improving the company’s balance sheet, Moho believes it is better positioned to pursue new project opportunities.