Ausmex Mining Group Ltd (ASX:AMG) has received strong support from existing and new institutional and sophisticated investors in a $7 million placement.
The company has received commitments for the over-subscribed placement comprising more than 58 million shares at a price of 12 cents per share.
Funds raised will be used for exploration activities including an extensive drilling campaign at the company’s Tier 1 iron oxide copper gold (IOCG) target within the Mt Freda Complex near Cloncurry in Queensland.
It is expected that almost 35 million shares will be allotted under listing rule 7.1 with the remainder to be allotted under listing rule 7.1A.
New shareholders welcomed
Ausmex managing director Matt Morgan said: “The company thanks its existing shareholders for their ongoing support and welcomes a number of new institutional and sophisticated shareholders onto the company’s register.
“AMG is now well positioned to advance its exploration activities and we look forward to updating the market on our progress.”
Settlement is expected to occur on April 5, 2019, with new shares to rank equally with the existing fully paid ordinary shares.
Subject to shareholder approval, the placement includes 250,000 shares to the managing director.
Armada Capital & Equities Pty Ltd and CPS Capital Group Pty Ltd acted as joint lead managers for the placement.