Maronan Metals (ASX:MMA) raises $5.65 million through share placement, supported by institutional investors and existing shareholders
Share Purchase Plan (SPP) to eligible shareholders could raise additional $1.5 million
Funds to accelerate development of Maronan silver-lead and copper-gold deposit
Special Report: Maronan Metals has successfully secured $5.65m via a share placement to support the exploration and development of one of Australia’s largest and highest-grade silver resources.
The world’s silver mines are struggling to keep up with demand, which will only be exacerbated in the years ahead thanks to the burgeoning solar and EV sectors.
Maronan Metals’ (ASX:MMA) advanced Maronan project in Queensland is just 90km north of Australia’s largest silver producer, South32’s (ASX:S32) giant Cannington mine.
It is one of Australia’s largest and highest-grade undeveloped silver deposits, with a silver-lead resource of 32.1Mt grading 6.1% lead and 107g/t silver (290g/t silver equivalent) for 300Moz silver equivalent metal.
It also has a separate inferred copper-gold resource of 32.5Mt at 0.84% copper, 0.61g/t gold and 7g/t silver (1.4% copper equivalent) for 455,000t of contained copper equivalent metal.
Critically, Maronan also has good metallurgy, a crucial part of any profitable mining operation.
The placement, which received firm commitments from professional, institutional, and sophisticated investors, was conducted at an issue price of $0.24 per share.
In addition to the placement, MMA will launch a Share Purchase Plan (SPP) for shareholders on the same terms as the placement to raise an additional $1.5m.
The SPP offer period is set to open on Monday, 27 May 2024, and close on Tuesday, 11 June 2024. Shareholders registered as of the record date will have the chance to participate.
A $7m cash pile
The cash raised will be used to advance the Maronan project through internal scoping studies, drilling programs to expand high-grade zones, and environmental and metallurgical studies.
Additionally, funds will support the commencement of pre-feasibility study work streams.
This article was developed in collaboration with Maronan Metals, 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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