Mako Gold Ltd (ASX:MKG) is raising an additional A$500,000 via a share purchase plan (SPP) to certain eligible shareholders who wish to subscribe for new shares in the company.
Under the proposed SPP, eligible Mako shareholders will have the opportunity to apply for up to A$30,000 of additional shares at A$0.01 per share without incurring brokerage or transaction costs
The SPP is strategically aligned with the company's placement of approximately 200 million new shares at an issue price of A$0.01 each, aiming to raise up to A$2 million.
To date, The company has concluded the first tranche of its share placement, issuing 86,401,227 fully paid ordinary shares and raising about A$860,000 from sophisticated and professional investors.
$MKG Mako Gold secures $2 million to fund gold and battery metals portfolio and potential acquisition https://t.co/tpWUajHLj9 @MakoGoldLtd #MKG #ASX #ASXNews— Proactive Australia (@proactive_au) November 19, 2023
SPP summary
The SPP will provide shareholders with the opportunity to increase their holding by up to $30,000 of new shares at the same offer price as the placement without incurring any brokerage or transaction costs.
In addition, each participant in the SPP will receive one free attaching unlisted option for every two shares issued under the SPP, on the same terms as the placement options.
The issue price of the new shares and terms of the options under the SPP are the same as those offered under the company’s institutional placement announced to ASX on November 17, 2023.
Placement summary
The SPP is to be undertaken in conjunction with the placement of approximately 200 million new shares at an issue price of $0.01.
Those sophisticated and professional investors who participated in the placement are to receive one free attaching unlisted option for every two shares subscribed for under the placement, exercisable at $0.02 per option at any time on or before January 31, 2025.
This is an offer of up to 100 million placement options to placement participants on the basis of 1 placement option for every two shares subscribed for by the placement participants under the placement, exercisable at $0.02 each and expiring on January 31, 2025, subject to shareholder approval.
Use of funds
The funds raised under the SPP and placement will be used for:
- Exploration to grow the Napié Gold Project in Côte d’Ivoire that hosts a 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;
- Exploration on Mako’s battery metals portfolio including the Korhogo Manganese Project and the new lithium/rare earths 400 square kilometres permit application (Brobo Project) expected to be granted in the coming weeks;
- Associated costs to undertake due diligence in relation to the Goldridge acquisition and execute a potential transaction;
- The costs of the offers and the placement; and
- General working capital.