Meeka Metals Ltd (ASX:MEK) is well placed to continue its exploration and growth efforts at its gold and rare earth element projects in Western Australia after receiving firm commitments to raise $8.8 million in a share placement at $0.06 per share.
The placement saw large contributions from existing shareholders, as well as new domestic and offshore investors.
The directors of Meeka also made a strong commitment, contributing $550,000 towards the placement, subject to shareholder approval.
The company will have $9.8 million in cash on hand once the placement has been completed.
“Immediately accelerate our drilling program”
“We would like to thank existing shareholders for their continued strong support of the company while also welcoming new shareholders, including high quality domestic and international institutions,” Meeka Metals managing director Tim Davidson said.
“This funding will allow us to immediately accelerate our drilling program along the 7-kilometre-long shear system that already hosts the St Anne’s and Turnberry deposits.
“The St Anne’s discovery recently produced intersections of 20 metres at 20.47 g/t gold and 32 metres at 16.07 g/t gold, and we see this as a significant high-grade growth opportunity. Both Turnberry and St. Anne’s are on mining leases.
“The funding will also accelerate our plans for the Albany-Fraser region where we have shallow, high-grade gold at Circle Valley, in addition to our two large-scale, high-grade rare earth projects.”
Meeka will use the funds specifically for the following:
- drilling along the 7-kilometre-long shear system, that already hosts both St Anne’s and Turnberry deposits, with a focus on high-grade gold discovery at St Anne’s;
- a Murchison Gold Project pre-feasibility study due in the December 2022 quarter;
- strike extension drilling for gold lodes at Circle Valley, Albany-Fraser Province;
- rare earth mineral resource infill drilling at Circle Valley;
- rare earths drilling at Cascade; and
- rare earth metallurgy test-work and process flowsheet development.