Metal Hawk's Strategic Capital Raise to Advance Gold Exploration
MHK (MHK) Share Update November 2024 Tuesday 12th
Metal Hawk Raises $2.5M to Boost Gold Exploration at Leinster South
Metal Hawk Limited (ASX: MHK) has successfully raised $2.5 million to fund its ambitious gold exploration activities at the Leinster South Project in Western Australia.
Instant Summary:
- Firm commitments to raise $2.5 million at $0.20 per share.
- 2.5% discount to the last closing price of $0.205.
- Funds to support maiden drilling program at Leinster South.
Capital Raise Details
Metal Hawk Limited has announced a successful capital raise of $2.5 million, achieved through a placement to existing shareholders at $0.20 per share. This price represents a 2.5% discount to the last closing price of $0.205, and a 6% premium to the 5-day VWAP prior to the placement.
The placement involves the issuance of 12,500,000 new fully paid ordinary shares, with 12,200,000 shares issued under the company's placement capacity according to ASX Listing Rules 7.1. An additional 300,000 shares are to be subscribed by company directors, pending shareholder approval.
Exploration Plans at Leinster South
The funds raised will be directed towards advancing Metal Hawk's exploration efforts at the Leinster South Project, where recent discoveries of high-grade gold have been reported. The company is preparing for a maiden RC drilling program, which is anticipated to commence following a heritage clearance survey in early 2025.
Located along the eastern limb of the Lawlers Anticline, the Leinster South Project has shown promising results from mapping and geochemical sampling, identifying high-grade outcropping gold at several untested prospects.
Leadership and Strategic Vision
Metal Hawk's Managing Director, Will Belbin, expressed enthusiasm about the strong support from shareholders, highlighting the exciting phase the company is entering as it gears up for significant exploration activities. The capital raise positions Metal Hawk well to pursue its strategic objectives and enhance shareholder value through successful exploration outcomes.
The successful capital raise is a positive development for Metal Hawk, providing the necessary financial resources to advance its exploration activities. The discount on the share price is minor, suggesting confidence from existing shareholders in the company's future prospects. The exploration at Leinster South, if successful, could significantly enhance the company's asset base and market valuation.
Investor Reaction:
Analysts are likely to view the capital raise favorably, as it demonstrates strong shareholder support and a clear strategic focus on exploration. The potential for high-grade gold discoveries at Leinster South could attract further investor interest, contingent on successful drilling results.
Conclusion:
Investors should keep a close eye on Metal Hawk's progress at the Leinster South Project, as successful exploration could lead to substantial value creation. The upcoming drilling program will be a critical milestone for the company.