Miramar Resources Completes Successful Entitlement Offer and Secures JMEI Credits
M2R (M2R) Share Update July 2024 Tuesday 23rd
Miramar Resources Raises $1.58 Million and Receives JMEI Credits
Miramar Resources Limited (ASX:M2R) has announced the successful completion of its non-renounceable rights issue, raising $1.58 million. Additionally, the company has received JMEI credits worth up to $450,000 from the Australian Taxation Office.
Instant Summary:
- Non-renounceable rights issue raises $1.58 million.
- Miramar receives JMEI Credit allocation of up to $450,000.
- 197,389,780 shares and 316,520,426 options to be issued.
- Funds to be used for exploration at Bangemall Ni-Cu-Co-PGE Projects and other ventures.
- Upcoming drilling programs at Mount Vernon and Trouble Bore Projects.
Successful Entitlement Offer
Miramar Resources Limited (ASX:M2R) has successfully raised $1.58 million through its non-renounceable rights issue, which was announced on 21 June 2024. The company will issue 197,389,780 shares and 316,520,426 options, exercisable at $0.018 each, expiring three years from the issue date. These options are expected to be quoted under the ASX code M2ROA, subject to satisfying the Listing Rule requirements.
Separate from the entitlement offer, the company will issue 119,130,646 options applied for under a new options offer pursuant to the prospectus. The funds raised will primarily be used for exploration programs at Miramar's 100%-owned Bangemall Ni-Cu-Co-PGE projects in the Gascoyne regions of Western Australia, the 80%-owned Gidji JV Project near Kalgoorlie, and other exploration and corporate activities.
JMEI Credits Allocation
In addition to the successful fundraising, Miramar has been granted Junior Mineral Exploration Incentive (JMEI) credits worth up to $450,000 by the Australian Taxation Office (ATO). These credits will be distributed to all Australian resident shareholders who participated in capital raising activities between 1 July 2024 and 30 June 2025, including the entitlement offer. The JMEI credits will be proportional to the amount invested by eligible shareholders and can provide a refundable tax offset for individual shareholders or superannuation funds, or franking credits for companies.
Upcoming Exploration Programs
Miramar is gearing up for its maiden reverse circulation (RC) drilling program at the Mount Vernon and Trouble Bore Projects, part of its 100%-owned Bangemall Ni-Cu-Co-PGE Project portfolio in the Gascoyne region of Western Australia. Site preparations for this drilling campaign are expected to be completed within the next two weeks, with drilling anticipated to commence in late August.
The company is also reviewing options for testing high-priority bedrock drill targets at the Gidji JV Project, located 15 km north of Kalgoorlie. Additionally, further work is planned at the Whaleshark Project in the Ashburton region of Western Australia, where a large magnetite exploration target has recently been outlined.
The successful fundraising and allocation of JMEI credits are positive developments for Miramar Resources. The additional capital will enable the company to advance its exploration projects, potentially leading to significant discoveries. The JMEI credits provide an added incentive for investors, as they offer tax benefits. Overall, these developments are likely to boost investor confidence and positively impact Miramar's stock price.
Investor Reaction:
Investors and analysts have reacted positively to the news, with many highlighting the potential for significant exploration success. The allocation of JMEI credits has been particularly well-received, as it provides additional financial benefits to shareholders.
Conclusion:
Miramar Resources' successful entitlement offer and the allocation of JMEI credits mark significant milestones for the company. Investors should keep an eye on the upcoming drilling programs and assess the potential long-term impacts on their portfolios. Miramar's strategic focus on exploration and the support of its shareholders position the company for future growth.