Musgrave Minerals Ltd (ASX:MGV, OTC:MGVMF) is raising $10 million to fund resource growth and development studies at the Cue Gold Project, situated within the highly prospective Murchison Province in Western Australia.
As part of the capital raise, the company received firm commitments of $8 million via a strongly supported placement to institutional and sophisticated investors.
New shares under the placement will be issued at $0.20 per new share, representing a 13% discount to Musgrave’s last trading price.
In addition, a share purchase plan (SPP) targeting $2 million has been offered to eligible shareholders at the same offer price as the placement.
New shares under the placement will be issued at $0.20 per new share, representing a 13% discount to Musgrave’s last trading price.
The SPP is anticipated to open on December 2, 2022, and is expected to close at 4.00 pm (AWST) on December 20, 2022.
Musgrave says that the Cue Gold Project represents a unique, high-quality asset with the cornerstone being the high-grade, near-surface Break of Day Trend deposits that will underpin its development studies.
“Systematic de-risking”
Musgrave managing director Rob Waugh said: “The progression of development studies, a systematic de-risking of the project and pursuing resource growth can ensure we unlock the inherent value of the project as a strategic asset and create value for shareholders.
“I’d like to welcome the new investors to the company, and we are pleased to offer existing eligible shareholders an opportunity to participate through the SPP at the same price as the placement.”
Use of funds
On completion of the capital raising, Musgrave will be well funded to continue exploration, resource growth efforts and development activities at the project, including:
- completion of stage 1 prefeasibility study (PFS);
- continuation of development studies and works to inform mining permitting and approvals;
- further conversion of inferred resources into the higher confidence, indicated resource category; and
- 30,000 metres of diamond and reverse circulation (RC) drilling to test newly identified targets and pursue resource growth (known and new deposits).