logo-loader

Meeka Metals raises $6.75 million to fund Murchison Gold Project phase 2 drilling

Published: 05:14 28 May 2021 BST

Meeka Metals Ltd -
The company anticipates that the placement shares will be issued on or about Thursday, June 3 2021.

Meeka Metals Ltd (ASX:MEK) has received binding commitments to raise $6.75 million to fund the next phase of exploration activity at the flagship Murchison Gold Project in Western Australia. 

The placement has been strongly supported by existing significant shareholders of the company as well as new institutional, sophisticated and professional investors. 

Meeka's placement was priced at 6.8 cents a share, which represents an 8% discount to Meeka’s last trading price of 7.4 cents. 

The company anticipates that the placement shares will be issued on or about Thursday, June 3, 2021. 

Placement shares will be issued under the company’s available placement capacity under ASX Listing Rule 7.1. 

“Strong support” by existing shareholders

Chief executive officer Tim Davidson said: “We are delighted to have received such strong support from our existing shareholders, and we also welcome a range of new institutional and sophisticated investors to our register.

“The proceeds ensure the company is well funded over the coming 12 months to unlock the enormous value we have identified at the Murchison Gold Project.”

Shaw and Partners Limited acted as sole lead manager to the placement.

Turnberry resource increase

Meeka has grown its total mineral resource for the Turnberry deposit to 1,115,000 ounces following a 125% increase to the resource estimate, which now stands at 610,000 ounces.

Turnberry forms a key part of the company’s broader Murchison Gold Project, which covers 343 square kilometres in the Murchison Goldfields in Western Australia.

This is the first mineral resource update to be completed since May 2019, when it was considered a non-core asset by previous owner Silver Lake Resources Limited (ASX:SLR) (OTCMKTS:SVLKF) (FRA:4SL).

Turnberry remains open to the north and south within a broad 5.5 kilometres trend of gold anomalism evident in drilling and associated with a similar geological stratigraphy.

The most advanced of these targets is the St Anne’s prospect, which displays a similar magnetic signature to Turnberry and similar grade and width intercepts in drilling, including:

  • 20 metres at 2.4 g/t gold from 57 metres including 8 metres at 5.0 g/t; and
  • 15 metres at 1.5 g/t from 104 metres including 4 metres at 4.7 g/t. 

The St Anne’s corridor presents a significant exploration opportunity, given the limited drilling completed along the 3.5 kilometres strike south of the Turnberry Mineral Resource and the anomalous gold observed in this drilling.

Given the large number of anomalous gold results within this corridor, Meeka intends to drill test the magnetic anomalies and existing identified mineralisation.

Initial assay results from the current 10,000 metres drilling campaign are expected in early June, with results from drilling specifically targeting the 5.5 kilometres Turnberry – St Anne’s corridor expected in July.

“Clear plan to grow existing resource”

Davidson said at the time: “We continue to build on our large, existing high-grade gold resource and this 125% upgrade at Turnberry is a fantastic outcome for Meeka.

“In short order, we have been able to clearly demonstrate the true scale and growth potential of our high-grade gold projects in the prolific Western Australian gold producing region of the Murchison.

“We have a clear plan in place to grow the existing resource base through systematic drilling and with a suite of high-grade gold targets outside of the existing resource base, we are looking forward to delivering further success.”

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

15 minutes ago