Miramar Resources Ltd (ASX:M2R) has received firm commitments from new and existing sophisticated investors to raise about $2.4 million by way of an oversubscribed share placement.
The company has also launched an underwritten option rights issue for existing shareholders.
Funds raised under the placement and option rights issue will be used to accelerate exploration activities at the company’s 80%-owned Gidji JV Project and conduct further exploration at the company’s other projects in the Eastern Goldfields, Murchison and Gascoyne regions of WA.
“Step change in the pace of activity at Gidji”
Miramar executive chairman Allan Kelly said the capital raising would allow the company to accelerate drilling programmes across the Gidji JV Project without affecting exploration activities across its other highly prospective projects.
Kelly added: “Since listing, we have confirmed that the Gidji JV Project has the potential to host multiple new gold deposits in close proximity to existing mining and processing infrastructure.
“This capital raising will allow for a step change in the pace of activity at Gidji, and we have multiple aircore, RC and diamond drill programs lined up ready to commence in the short term.”
Miramar’s current aircore drilling campaign testing the Blackfriars and Highway targets has been completed, with samples submitted and assays pending.
Planning for testing of Boorara North, 8-Mile and The Jog is also underway while follow-up of the recent high-grade gold results from the December 2021 aircore program, and testing of potential nickel sulphide targets, are also planned.
Placement and option rights issue details
The placement of 14,077,525 shares at an issue price of $0.17 per share to raise about $2.4 million will include a free attaching option (one option for every two shares issued) exercisable at $0.25 each and expiring two years from the date of issue.
Miramar also intends to complete a fully underwritten non-renounceable rights issue of options in June 2022.
Existing shareholders will have the right to subscribe for one option for every two shares held on the record date at an issue price of $0.01 per option.
The options will be exercisable at $0.25 each expiring two years from the date of issue, and the company will apply to have the options quoted and tradeable on the ASX with the placement options.