Mako Gold Ltd (ASX:MKG) has received overwhelming support from eligible shareholders for a share purchase plan (SPP) and has increased the offer to $2 million from the originally intended $500,000.
The SPP offer opened on January 18, 2024, and was intended to raise up to $500,000 from the issue of SPP shares but the company received applications in excess of $3.7 million.
This strong support follows the announcement of the company’s first results of the ongoing mapping and rock chip sampling program at Tchaga North on the 90%-owned flagship Napié Gold Project in Côte d’Ivoire.
READ: Mako Gold assays up to 79.5 g/t gold in rock chips at Napié; shares up
The program resulted in the discovery of several new high-grade gold-bearing structures oriented east-west, which is significant as the limited drilling completed to date at Tchaga North was predominantly towards the east.
“Testament to enormous potential”
Managing director Peter Ledwidge said: “The overwhelming support demonstrated by the significant oversubscription to our SPP is a testament to the enormous potential of our projects.
"The proceeds of the upsized SPP will be used to unlock value for Mako shareholders by advancing our projects to drill-ready stage with low-cost exploration in these challenging markets.
"Our strategy will keep us poised take advantage of the impending resurgence in gold equities.”
Offer increased
In light of the SPP demand, Mako’s Board of Directors resolved to increase the SPP offer to $2 million and to facilitate the increase, the company will issue a supplementary prospectus to update the disclosure made in the original prospectus.
This supplementary prospectus will include additional disclosure in respect of the proposed use of funds based on the oversubscription and has been lodged with ASIC and ASX today.
READ: Mako Gold secures $2 million to fund gold and battery metals portfolio and potential acquisition
The SPP offer is being undertaken in conjunction with a placement of approximately 200 million new shares at $0.01 for $2 million and 100 million free attaching unlisted option.
The offer of the placement options was made under the original prospectus to those investors who participated in the placement.
The supplementary prospectus does not amend the terms of the placement options offer, other than in relation to the timetable for the offer.
To close early
Due to the unexpected level of interest in the SPP, the board has resolved to close the offer a day early as the subscription level is significantly in excess of the original offer amount.
As a result of the demand, the company will increase the size of the SPP offer but will still need to return funds to applicants.
Initially anticipated to close at 5:00pm (AEST) on Thursday, February 15, 2024, the SPP offer will now close at 5:00pm (AEST) on Wednesday, February 14, 2024.
Use of funds
The funding will allow Mako to advance exploration in Côte d’Ivoire at the Napié Gold Project and at the Korhogo Manganese Project as well as at a pending lithium-prospective application.
Exploration at Napié is intended to increase the maiden JORC 2012 mineral resource estimate of 22.5 million tonnes at 1.2 g/t for 868,000 ounces at the Tchaga and Gogbala prospects.
Funds will also be utilised for exploration on Mako’s battery metals portfolio including Korhogo and at Brobo Project, a new lithium/rare earths 400 square kilometres permit application.