Mako Gold Ltd (ASX:MKG) has secured binding commitments to raise $3.1 million (before costs) through a placement at 4.1 cents a share.
The raise is supported by new and existing institutional investors, including the company’s directors, who together subscribed for $100,000 worth of shares.
Mako intends to use the funds to execute exploration and drilling campaigns at its flagship Napié Gold Project, including:
- An auger drilling program to identify new targets with a similar footprint as the Tchaga and Gogbala prospects;
- reverse circulation drill program to follow up on the highest-priority auger anomalies;
- metallurgical test-work; and
- environmental and social baseline studies (water, flora and fauna, and land use).
MKG will also advance exploration at the Korhogo Gold Project, specifically with geological mapping and rock chip sampling, and service corporate costs and general working capital requirements.
Placement details
The vast majority of Mako's placement will vest in a single tranche of up to 72.3 million new shares under its existing placement capacity.
The company's cornerstone investor, Dundee Goodman Merchant Partners, opted into the placement to maintain its 9.9% holding.
Of course, director participation (totalling a further 2.4 million new shares for $100,000) is subject to shareholder approval, which will be sought at an annual general meeting scheduled for November.
Support speaks to quality of project
“We are extremely pleased by the continuing support from quality domestic and international institutional investors,” Mako Gold managing director Peter Ledwidge said.
“Attracting such high-quality institutional investors speaks to the potential of the project and experience of our team.
“Proceeds of the placement will strengthen Mako’s balance sheet and provide a pathway to accelerate exploration on the Napié Project as we build on our recently announced maiden mineral resource estimate of 868,000 ounces of gold.
“The funds raised will also allow us to continue groundwork on our Korhogo Project."
“We are pleased to welcome a number of new shareholders to our register and sincerely thank our existing shareholders for their continued support.”