MetalsGrove Mining Ltd (ASX:MGA) has completed an entitlement offer, which was fully subscribed with applications received for more than 52.7 million shares to raise $2.1 million before costs.
Shareholders were offered one fully paid ordinary share for every share held at a price of $0.04 per new share.
Participants were also offered one free attaching option with an exercise price of $0.12, expiring three years from their issue date.
The funds will go to various exploration programs across the company’s assets while also offering opportunities for further potential acquisitions.
MetalsGrove is focused on exploring its portfolio of lithium projects in Zimbabwe as well as multi-metal projects including rare earth, copper-gold, manganese and base metal assets in Western Australia and the Northern Territory.
Success in difficult market
“In what are very difficult capital market conditions for junior exploration companies such as we are currently experiencing, it is very pleasing for the entitlement offer to have achieved such a successful outcome,” MetalsGrove Mining managing director and CEO Lijun Yang said.
“We are grateful for the continued support of our current shareholders and would like to wish a very warm welcome to new shareholders.
“These funds will allow the company to continue to progress its various exploration programs as well as consider new acquisitions when attractive opportunities arise.”
Of the shortfall from the entitlement offer, $200,000 shares have been allocated to Lijun Yang, who partially underwrote the entitlement offer.