Magnetic Resources Successfully Completes A$10M Placement for Lady Julie Gold Project
MAU (MAU) Share Update September 2024 Sunday 29th
Magnetic Resources Secures A$10M to Boost Lady Julie Gold Project
Magnetic Resources NL (ASX: MAU) has announced the successful completion of a A$10 million placement to fund the advancement of its Lady Julie Gold Project in Laverton.
Instant Summary:
- Magnetic Resources raises A$10 million from new and existing investors.
- The placement was oversubscribed with strong domestic and international participation.
- Funds will be used for resource definition drilling, deeper drilling for resource expansion, exploration drilling, feasibility work, and general working capital.
- 8 million new fully paid ordinary shares to be issued at A$1.25 per share.
- The issue price represents an 8.4% discount to the last-close and a 9.2% discount to the 5-day VWAP.
Successful A$10M Placement
Magnetic Resources NL (Magnetic or the Company) is pleased to announce the successful completion of its A$10 million (before costs) single tranche placement to sophisticated, professional, and institutional investors. The placement received significant demand and was oversubscribed, demonstrating strong investor confidence in the Company's prospects.
Fund Allocation
The funds raised will be allocated towards several key initiatives. These include resource definition drilling, deeper drilling for resource expansion at the Lady Julie Gold Project (LJGP), exploration drilling, ongoing feasibility work, and general working capital. This comprehensive approach aims to enhance the project's value and accelerate its commercialisation.
Investor Participation
The placement saw robust participation from both domestic and international investors, including multiple specialist resources funds. Under the placement, the Company will issue 8 million new fully paid ordinary shares at an issue price of A$1.25 per share. This price represents an 8.4% discount to the last-close on 25 September 2024 (A$1.365 per share) and a 9.2% discount to the 5-day VWAP (A$1.376 per share).
Management's Perspective
Magnetic's Managing Director, George Sakalidis, expressed his gratitude to the existing shareholders for their ongoing support and welcomed new shareholders. He highlighted the Company's excitement about the potential for a financially robust, low-cost, high-margin gold production at the Lady Julie Gold Project. The funds from this placement will enable the Company to continue drilling for deeper resource extensions while advancing feasibility work, with the goal of establishing a long mine life.
Placement Timetable
The proposed timetable for the placement is as follows:
- Trading halt and launch of Placement: Thursday, 26 September 2024
- ASX Announcement / Resume Trading: Friday, 27 September 2024
- Settlement of the Placement shares: Friday, 4 October 2024
- Expected date of ASX Quotation of Placement shares: Monday, 7 October 2024
The timetable is indicative only and subject to variation. The Company reserves the right to alter the timetable at its discretion and without notice, subject to the ASX Listing Rules and the Corporations Act (Cth).
The successful completion of the A$10 million placement is a positive development for Magnetic Resources. The funds will enable the Company to advance the Lady Julie Gold Project, potentially increasing its resource base and enhancing its commercial viability. This could lead to a positive re-rating of the stock as investors anticipate future growth and profitability.
Investor Reaction:
Analysts are likely to view this development favorably, given the oversubscription of the placement and the strong participation from both domestic and international investors. The discounted issue price may attract additional investor interest, further supporting the stock price.
Conclusion:
Investors should keep an eye on the progress of the Lady Julie Gold Project and monitor any updates from Magnetic Resources. The successful placement and the planned use of funds indicate a promising future for the Company. Those interested in the gold sector may find this an opportune moment to consider Magnetic Resources as part of their investment portfolio.