Magmatic Resources Ltd raises A$3.0 million via Placement
Key points
- Firm commitments received for A$3.0 million Placement at A$0.061 per New Share
- Major shareholder FMG Resources Pty Ltd increases shareholding to 19.9%
- Funds to accelerate exploration at Weebo Gold Project and East Lachlan Copper Gold Projects
Full summary
Magmatic Resources Ltd (ASX:MAG) has received firm commitments for a A$3.0 million Placement at A$0.061 per new fully paid ordinary share. The Placement was strongly supported by existing and new domestic and offshore institutional and sophisticated investors. Major shareholder FMG Resources Pty Ltd has increased their shareholding from 18.32% to 19.9% on completion of the transaction. Funds raised under the Placement will be used primarily to accelerate exploration activity at the Weebo Gold Project, with a new drilling campaign set to commence in November following the success of the Company's maiden drilling programme. Funds will additionally be applied to ongoing expenditure at the Company's East Lachlan assets, in addition to general working capital. Magmatic's Managing Director David Richardson commented that the significant demand received in the Placement reflects the market's support of the Company's multi-asset strategy, with accelerated exploration activity at Weebo and ongoing works at Myall set to deliver ongoing news flow against strengthening commodity prices.
Outlook
The Company looks forward to providing shareholders with updates as it seeks to grow these exciting assets.
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