$1.7m to be raised through a share placement and rights issue
Funds to be used for maiden drilling at Bangemall and exploration at Gidji
Bangemall potentially contains Norilsk-style nickel-copper-cobalt-PGE mineralisation
Special Report: WA-focused Miramar Resources will raise approximately $1.7m to progress exploration work as it looks to prove up critical minerals and gold deposits at its Bangemall and Gidji projects.
Miramar Resources (ASX:M2R) is under the stewardship of executive chair Allan Kelly, a 25-year mining veteran who successfully listed gold miner Doray Minerals.
Kelly received the 2014 “Prospector Award” for the discovery of the high-grade Wilber Lode deposit at the company’s Andy Well project, which was named “Australian Mine of the Year” the following year.
Kelly is looking to repeat his success at M2R, with a new $1.7m capital raise to fund exploration at the Bangemall nickel-copper-cobalt-PGE project area in the Gascoyne region and the company’s 80%-owned Gidji gold project in the WA Goldfields.
M2R’s project locations in WA. Pic supplied: (M2R)
As part of the capital raise, M2R has received firm commitments for a $546,600 share placement to sophisticated investors with the remainder raised through a non-renounceable rights issue.
45,550,719 shares will be issued at 1.2c per share, a 23.1% discount to the 15-day VWAP of 1.6c in two tranches for the placement, and the company intends to raise about $1.2m through a pro-rata rights issue of one share for every two held by eligible investors.
Targets at Bangemall
M2R is searching for Norilsk-style nickel-copper-cobalt-PGE mineralisation at Bangemall and recently tested five targets at the ‘district scale’ Mount Vernon and Trouble Bore target areas.
Ground electromagnetic surveys outlined conductive drill targets consistent with Norilsk’s nickel-copper-cobalt-PGE deposits in Siberia ahead of planned maiden drilling.
Drill targets at Bangemall. Pic supplied: (M2R)
“Over the last 24 months, the company has progressed the Bangemall projects from regional-scale area selection, to collection of project-scale datasets; and more recently, to delineation of individual drill targets,” Kelly says.
“We have a very exciting opportunity at Bangemall to make a discovery of a new style of nickel-copper-cobalt and PGE mineralisation in a new geological province and look forward to the maiden drilling program in the Bangemall, whilst progressing our other projects.”
Exploration at Gidji
Miramar holds an 80% interest in a strategic land package within the Boorara Shear zone, between the Kalgoorlie Super Pit and the Paddington gold deposit.
Several new shallow gold discoveries have been made at Gidji by systematically drill-testing structural targets beneath transported cover and the company plans to kick off exploration once more at the project.
This article was developed in collaboration with Miramar Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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