The placement saw interest from existing shareholders, allowing Magnetic to advance its Laverton Project gold deposits and adding extensions to Lady Julie 4.

Magnetic Resources (ASX:MAU) directors contributed $600,000 towards the placement, which will be subject to shareholder approval at a meeting in the near future.

Funds will be predominantly used to advance development approvals, economic studies, evaluate nearby processing facilities, and make headway on drilling extensions at Lady Julie, together with additional working capital. Magnetic is now well funded and can complete its planned work programmes.

The placement price represents a 12% discount to the last closing price of $1.02 per share, with all shares being issued within the company’s existing 15% placement capacity.

“I would like to thank the shareholders and directors for this tremendous participation in this placement,” MAU managing director George Sakalidis says.

Drilling kicks off at Lady Julie North 4

Earlier this month, a 14-hole drilling program kicked off across Lady Julie North 4 with the intent of extending the high-grade core within the central part of the indicated and inferred resource, which currently stands at 2.27Mt at 1.27g/t for 109,000oz. Recent drilling is looking to extend the size of the Deposit and is being tested over a km in length and down dip.

The Lady Julie North 4 Deposit is part of the overall Laverton Project Resource base of 13.1Mt at 1.22g/t Au totalling 511,000oz at a 0.5g/t cut off. Particular attention is being paid to areas where NNW and NE trending structures intersect known and interpreted porphyry intrusions – mainly in the Lady Julie strip – which have not been explored due to thicker soil cover.

The three main Deposits are HN9, Lady Julie Central and Lady Julie North 4 are all shallow deposits and, in some cases, starting from surface, providing low strip ratios and potential for economic ore that is open-cuttable and are effectively part of one mining centre.

 

 

 

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.

 

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