Meeka Metals has raised $8.8 million to restock its coffers and accelerate drilling at its 1.1Moz Murchison gold project after a new discovery lit up the market.

Showing quality gold finds will draw investor interest even in weak markets, Meeka (ASX:MEK) locked up the $8.8m Bell Potter-led placement at 6c per share. A great result for shareholders given the recent volatility in the market and at only a 1.5% discount to the 30-day VWAP at close of trading on the 10th of August 2022.

It comes just days after the emergence of superb high grade intersections in drilling at the St Anne’s target, which is yet to be incorporated into Meeka’s Murchison resource.

Hits of 20m at 20.47g/t and 32m at 16.07g/t demonstrate its potential as a third resource centre alongside the large scale Turnberry open pit and very high grade Andy Well underground deposits.

The funding, which will give Meeka a healthy $9.8m in the bank at completion, will fully fund it for the next phase of drilling for growth and discovery.

Drilling will take place along the 7km long shear that hosts St Anne’s and Turnberry, with a focus on the high grade mineralization found at St Anne’s.

Rarer than rare

Alongside the Murchison gold project, where a pre-feasibility study is due in the December quarter, Meeka will also use the funds to drill for gold and rare earths at its Circle Valley and Cascade projects in the Albany-Fraser Province.

Drilling will focus on strike extensions of gold lodes at Circle Valley, as well as rare earth mineral resource infill drilling at the same project, rare earths drilling at Cascade and metallurgy testwork and flowsheet development.

The placement will include the issue of 138 million new shares to existing and new shareholders, with Meeka’s directors also putting more skin in the game, intending to subscribe for 9.2 million shares worth $550,000 subject to shareholder approval.

“This funding will allow us to immediately accelerate our drilling program along the 7km long shear system that already hosts the St Anne’s and Turnberry deposits, which are both on mining leases,” Meeka MD Tim Davidson said.

“The St Anne’s discovery recently produced intersections of 20m @ 20.47 g/t Au and 32m @ 16.07 g/t Au, and we see this as a significant high-grade growth opportunity.

“The funding will also accelerate our plans for the Albany-Fraser region where we have shallow, high-grade gold at Circle Valley, in addition to our two large scale, high-grade rare earth projects.”

 

 

 

This article was developed in collaboration with Meeka 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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