Mt Malcolm Mines NL Fully Subscribes SPP Shortfall Placement
MT MALCOLM MINES NL (M2M) Share Update July 2024 Monday 8th
Mt Malcolm Mines NL Secures Additional $240,000 in SPP Shortfall Placement
Mt Malcolm Mines NL (ASX: M2M) has successfully raised an additional $240,000 from sophisticated investors, bringing the total funds raised through the SPP Shortfall Placement to $815,000.
Instant Summary:
- Mt Malcolm Mines NL raises a total of $815,000 through SPP Shortfall Placement.
- 40,750,000 new ordinary shares issued at $0.02 per share.
- Novus Capital Ltd acted as broker, earning a 6% fee on the raised amount.
- Funds will be used to strengthen the company's balance sheet and accelerate future investments at Golden Crown.
SPP Shortfall Placement Details
Mt Malcolm Mines NL (ASX: M2M) announced that it has successfully raised an additional $240,000 from sophisticated investors, bringing the total amount raised through the SPP Shortfall Placement to $815,000. This placement involves the issuance of 40,750,000 new ordinary shares at a price of $0.02 per share, the same price offered under the Share Purchase Plan (SPP).
Novus Capital Ltd acted as the broker for this placement and will receive a fee of 6% on the amounts raised. The new shares will be issued under the company's Listing Rule 7.1 and 7.1A placement capacity, with 24,900,000 shares under Listing Rule 7.1 and 15,850,000 shares under Listing Rule 7.1A. These shares will rank equally with existing ordinary shares from the date of issue.
Use of Proceeds
The proceeds from the SPP Shortfall Placement, along with existing funds, will be used to strengthen the company's balance sheet. This financial boost will provide a platform for Mt Malcolm Mines NL to assess and accelerate future investments at Golden Crown. This includes comprehensive bulk sampling work announced on 29 May 2024, with further promising results announced on 21 and 28 June 2024.
Management Comments
The announcement was approved and authorized for market release by Trevor Dixon, Managing Director of Mt Malcolm Mines NL. For further information, investors are encouraged to contact Trevor Dixon directly via email at [email protected].
The successful completion of the SPP Shortfall Placement is a positive development for Mt Malcolm Mines NL. The additional funds will strengthen the company's balance sheet and support future investments at Golden Crown. This could lead to increased investor confidence and potentially boost the company's stock price. However, the issuance of new shares may dilute existing shareholders' equity.
Investor Reaction:
Analysts and investors have generally reacted positively to the news, citing the successful fundraising as a sign of strong investor confidence in the company's future prospects. The additional funds are expected to provide a solid foundation for future growth and development at Golden Crown.
Conclusion:
Investors should consider the potential long-term benefits of the additional funds raised through the SPP Shortfall Placement. The strengthened balance sheet and accelerated investments at Golden Crown could lead to significant growth opportunities for Mt Malcolm Mines NL. Investors are encouraged to stay informed about the company's future developments and strategic initiatives.