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Mako Gold's strongly supported placement raises A$3.25 million to fund Napié gold exploration

The placement positions Mako with a strong cash balance of $4.8 million to execute a systematic exploration and growth strategy.

Mako Gold Ltd - Mako Gold receives strong support from investors to raise $3.25 million funding Napié Gold Project exploration
Firm commitments were received for more than $6.4 million, indicating strong demand

Mako Gold Ltd (ASX:MKG) has received binding commitments for a two tranche placement to raise A$3.25 million before costs, funding further exploration at the Napié Gold Project in Côte d’Ivoire, West Africa.

The placement was strongly supported by existing shareholders and introduced several new, high-quality domestic and international investors to the Mako share register, further validating the Napié project and Mako’s tier-1 exploration team.

A strong indication of the demand came with the receipt of firm commitments for in excess of A$6.4 million.

“Overwhelming demand”

Managing director Peter Ledwidge said: “The overwhelming demand from institutional and sophisticated investors is a strong endorsement of Mako’s flagship Napié gold project and its exploration team."

This team has a track record of success in West Africa having discovered in excess of 2.6 million ounces of gold for Orbis Gold leading to a subsequent circa A$180 million takeover by TSX-listed African gold producer SEMAFO (TSE:SMF).

Ledwidge said: “This capital raising provides us with balance sheet support for our extensive exploration program at Napié.

"With a strike length of 30 kilometres, multiple mineralised structures and less than 10% explored to date, we believe the Napié has potential to host multi-million-ounce gold deposits.”

Funded to execute systematic exploration

Together with existing cash reserves of around A$600,000 and proceeds of A$1.1 million from the recent divestment of the Niou Project, the placement ensures Mako is funded to execute a systematic exploration and growth strategy.

The company plans to extend existing high-grade mineralisation, to test multiple high priority regional prospects and deliver a maiden resource estimate at the Napié project.

Two-tranche placement

This placement will comprise the issue of 65 million shares at an issue price of 5 cents per share as follows:

  • Tranche-1 of the placement will comprise 11.3 million new shares, is not subject to shareholder approval and will fall within the company’s placement capacity under ASX Listing Rule 7.1 and 7.1A; and
  • Tranche-2 will comprise up to 53.7 million new shares and will be issued subject to shareholder approval at a general meeting to be held on or around early July.

Drilling is expected to begin in early July and continue through the remainder of 2020.

Quick facts: Mako Gold Ltd

Price: 0.13 AUD

ASX:MKG
Market: ASX
Market Cap: $21.86 m
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Mako Gold working towards maiden resource at Napié Gold Project

Mako Gold Ltd's (ASX:MKG) Peter Ledwidge speaks to Proactive's Andrew Scott while at the Mines & Money event in London 2019. They've recently completed 19 reverse circulation (RC) holes for 2,090 metres at its Tchaga Prospect within the Napié Gold Project in Cote d’lvoire, West...

on 25/11/19

2 min read