Mako Gold Ltd (ASX:MKG) has secured binding commitments to raise $2.6 million at a price of $0.03 per share, with a follow-on loyalty option offer to raise up to a further $678,000.
The placement is well supported, including from management and from Dundee Corporation which maintains its cornerstone 9.6% stake and its faith in Mako’s flagship Napié Project and the Tier-1 management and exploration team behind it.
Dundee has subscribed for around 8.3 million shares, while the Mako Board and Management intend to participate in the Tranche 2 Placement for a total of $80,000 through the issue of 4,333,336 new shares (subject to Shareholder Approval at the General Meeting).
Funds will be used, in conjunction with $1.35 million in cash reserves and access to a US$2 million Geodrill (TSX:GEO) Drill-forEquity Facility for its near-term resource growth strategy.
Mako aims to expand the existing 868koz Au resource base through drill testing the highest priority resource extensional targets and auger anomalies.
The company’s overall plans include:
- exploration and drilling campaigns at the company’s flagship Napié Gold Project that hosts a Maiden JORC 2012 Mineral Resource Estimate of 22.5Mt at 1.2g/t for 868koz Au at the Tchaga and Gogbala Prospects;
- drill testing high priority auger anomalies and resource extensional targets at Napié;
- technical studies, including structural geology assessment of the Napié Gold Project;
- exploration activities advancing gold and newly discovered manganese prospects at the Korhogo Projects.
- Investors can expect to see a stream of strong near-term news-flow with two Reverse Circulation (RC) drill rigs secured to start drilling on Mako’s flagship Napié Project.
Mako managing director Peter Ledwidge is pleased with the response.
“Our vision for delineating a multi-million-ounce gold camp at Napié in Côte d’Ivoire is being recognised and demonstrated through the ongoing support for this Placement by a large number of our technical-driven shareholders, as well as the introduction of several new institutional and sophisticated investors,” Ledwidge said.
“We look forward to kicking off our 2023 drilling campaign soon, which will consist of a combination of extensional drilling to drive resource growth, as well as investigating the highest priority multi-kilometre targets identified in our recent 25,000m auger drilling programs.
“Somewhat unexpected, but a very interesting development for Mako, is the recent discovery of significant manganese mineralisation over a combined 14km strike at our Korhogo Project. Given the consistent values returned in all samples collected the and scale potential demonstrated by the extensive strike-length, in a region already hosting an operating manganese mine, we will be undertaking further field works to better understand this opportunity.”
About the Placement
Mako’s Placement will comprise the issue of around 86.7 million new fully paid ordinary shares at an issue price of $0.03 per share as follows:
- Tranche 1 Placement, comprising 70,747,704 New Shares (~$2.1M), is not subject to shareholder approval.
- Tranche 2 of the Placement (including Dundee Corporation and Mako Directors) comprising up to around 15.9 million new shares (~$478k), will be issued subject to shareholder approval at a General Meeting proposed to be held in early June 2023.
The Placement Options will be exercisable at $0.05, each with an expiry date 24 months from date of issue and will be issued subject to shareholder approval at the General Meeting.
Settlement of Tranche 1 of the Placement is expected to be completed on Monday, May 8 2023.
Settlement of Tranche 2 of the Placement is expected to be completed on or around early/mid-June 2023.
About the Loyalty Option Offer
Mako intends to undertake a non-renounceable Loyalty Option entitlement issue to all Shareholders in Australia, New Zealand, and certain other jurisdictions to be set out in the Prospectus.
The Loyalty Options Offer will be on the basis of one unlisted option for every four Shares held on the record date, for a subscription price of $0.005 per option, with an exercise price of $0.04, and expiry date of 12 months from the date of issue, raising up to approximately $678,000 in addition to the Placement.
The proposed Record Date to determine eligibility for the Loyalty Options Offer will be on or around Friday, May 12, 2023.
Eligible shareholders will be offered the opportunity to apply for surplus to their pro-rata entitlement to the extent there is a shortfall available.