Mako Gold Limited (ASX:MKG) has received binding commitments for a Placement to raise A$2.6M before costs.
In addition, the company has invited all existing eligible shareholders to participate in a forthcoming offer of loyalty options in the form of a non-renounceable entitlement issue of options as detailed further in this release.
The Placement was strongly supported by existing shareholders and introduced a number of new, high quality international investors to the Mako share register. The significant interest received provides strong validation of the company’s flagship Napié Project and Tier-1 management and exploration team that has demonstrated a track record of success in West Africa.
Prominent North American resource fund, Dundee Corporation, cornerstoned the Placement with a binding commitment to subscribe for c.8.3M shares and will maintain its holding of 9.6% in Mako’s pro-forma issued capital following completion of the Placement.
Discovery Capital Partners Pty Ltd and Euroz Hartleys Limited are Joint Lead Managers to the Placement.
Use Of Funds
Together with existing cash reserves of A$1.3M (as at 31 March 2023) and access to a US$2M Geodrill Drill- for-Equity Facility, the Placement and proceeds from the Loyalty Option Offer will ensure Mako is well funded to execute its strategic plan. This includes:
* 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; and
* General working capital purposes.
“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,” Managing Director, Peter 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 programmes.
“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.”
For further information please visit: https://www.makogold.com.au
