Many Peaks Minerals raises $6m at a premium to ramp up Ferké drilling

• Many Peaks Minerals raises $6.22m via placement
• The placement was supported by a group of high net-worth investors
• Capital will be used to fund drilling activities at the Ferké project

Special report: Many Peaks Minerals has gained the support from a group of high-net worth investors following a $6.22m raising via a placement of more than 17.7m shares at a price of 35c.

The raise comes hot on the heels of impressive drill hits at the Ferké gold project in Cote d’Ivoire earlier this week, which saw the company’s share price climb 13%.

Many Peaks Minerals (ASX:MPK) recorded an intercept from just 104m deep of 45m at 8.58g/t gold in a previously undetected high-grade shoot during initial diamond drilling at the formerly Turaco Gold (ASX:TCG) and Predictive Discovery (ASX:PDI) owned project.

MPK managing director Travis Schwertfeger said the new drilling results add to the growth potential of the asset by enhancing depth potential and expanding the overall footprint.

The company is now looking to use the placement funds to assess the district scale potential of Ferke with an aircore drilling program currently underway and a follow up RC drilling campaign set to begin in April.

“Diamond drilling will then come in to test our feeder structure and some 400 to 600 metre step outs at Ouarigue, so a lot of targets to be tested in the coming months,” he told Stockhead.

Watch: MPK drilling to new heights in Côte d’Ivoire

Placement details

The two-tranche placement price represents a 6% premium to the company’s 15-day VWAP through the close of trading on Wednesday, March 19.

The placement was made to existing shareholders, ranging from several long-term supporters to a number of new shareholders who have strongly participated in recent on-market buying.

Under Tranche 1, more than 14.7m shares will be issued using the company’s 25% placement capacity pursuant to ASX Listing Rules 7.1 and 1.1a with around 6.5m shares issued under the LR7.1 placement capacity and another ~8.2m shares to be issued under the LR7.1A placement capacity.

Tranche 2 will see directors of the company participate in the placement, subject to shareholder approval expected to be held in May.

MPK shares were up 8.1% on Thursday morning on the show of support from investors.

Placements are typically conducted at a discount, underlining the excitement from institutional and sophisticated investors around the Ferké drill results with shareholders prepared to offer a premium for a larger slice of the action.

Watch: MPK reaches new heights with its maiden drilling program

This article was developed in collaboration with Many Peaks Minerals, 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.