Metals of Africa (ASX:MTA) is now well-funded to progress exploration at its projects after completing the rights issue and shortfall placement, and combined with a placement, raised around $5 million.
Funds will be allocated to geophysical programs and upcoming drilling programs at the Rio Mazoe base metal and Montepuez graphite projects.
Montepuez is strategically located in one of the hottest exploration areas in Africa, with two of the licences that make up the project located along strike from graphite heavy weights Syrah Resources’ (ASX:SYR) Balama Graphite Project and Triton Minerals' (ASX:TON) Balama North Graphite Project.
Much of Montepuez occurs within the same regional geological setting as these large graphite deposits.
Capital raising details
The fully underwritten rights issue at $0.15 raised around $3.2 million before costs, and combined with a placement of $1.8 million to professional and sophisticated investors, the company raised in total just over $5 million.
Rio Mazoe Base Metal Project
MTA is in the final stages of preparing for drilling to commence later this month.
Soil geochemistry in combination with ground geophysics is producing robust drill targets. Ground magnetics and induced polarization surveys are now complete, leaving electro magnetics remaining.
There is an abundance of drill rigs available in the Tete province to facilitate a cost effective drill program. It is anticipated that the drilling contract will be awarded next week.
MTA is targeting Broken Hill type zinc, copper, lead and silver mineralisation.
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