Investors back Magnetic’s $2.6m raise to advance gold exploration
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Magnetic and its Laverton gold projects have received a shot in the arm from new and existing investors that have committed to a $2.6m share placement.
The placement of 1.83 million shares priced at $1.42 each, a 12 per cent discount to the average closing price of the five prior days of trading, received strong interest from new broker Viriathus Capital and existing brokers and shareholders. This $2.6M top up leaves Magnetic with close to $8M, which is sufficient to progress all drilling and future studies.
Proceeds will be used by Magnetic Resources (ASX:MAU) for additional reverse circulation and diamond drilling, metallurgical work as well as resource and scoping studies to advance the Hawks Nest 9 and Lady Julie projects.
“We continue to intersect significant gold mineralisation in our drilling at both the Hawks Nest 9 and Lady Julie projects, and we remain encouraged by the mineralisation showing up in our two thickened mineralised zones and the new targets from the seismic interpretation,” managing director George Sakalidis said.
“These funds will allow the company to continue the significant drilling campaigns we started in January 2021 with the aim of defining JORC at these two projects.
“Our drilling to date has shown four stacked lodes in the top 100m and our ongoing drilling will investigate mineralisation at depths down to 300-400m.”
A recent 2D seismic survey has identified eight persistent thrusts that come close to surface and are at least 6km in length and extend the HN9 and Lady Julie mineralised areas and structures northwards into the HN5 and HN6 areas. This highlights their potential to be part of a shallow, large-scale gold mining centre.
This same work also highlighted the presence of multiple stacked structures that correlate with the shallow easterly dips of mineralisation at both HN9 and Lady Julie.
These structures extend down to between 1.5km to 2km depth at HN9 and 1km at Lady Julie.
Magnetic has kicked off a deeper drill program of 22 holes totalling 3,280m to test the prospective thrusts identified by the seismic work.
This article was developed in collaboration with Magnetic 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.