Investors have demonstrated their support for Miramar’s plan to advance exploration across its portfolio in the Gascoyne region by backing a $600,000 placement.
Proceeds from the capital raising will be used by Miramar Resources (ASX:M2R) to kick off its Gascoyne exploration with first bedrock testing of a large iron oxide copper gold (IOCG) target at its Whaleshark project near Onslow.
Gravity surveying had recently added further confidence that Whaleshark is prospective for IOCG, identifying a discrete gravity anomaly in the “neck” of the granite that has been crosscut by a northwest-trending fault and is coincident with the surface and aircore geochemical anomalism.
In addition to Whaleshark, funds raised will also be used in exploration planned for the Dooley Downs REE and Mt Vernon Ni-Cu-PGE targets which are part of Miramar’s larger “Bangemall Project” within the Proterozoic Capricorn Orogen.
Highly prospective target
“Over the last two years, we have advanced the Whaleshark Project from an interesting magnetic anomaly to a highly prospective bedrock drill target with similarities to several large and valuable IOCG deposits elsewhere in Australia,” executive chairman Allan Kelly said.
“This capital raising will allow us to drill test the Whaleshark IOCG target for the first time as well as allowing us to advance other projects in the Gascoyne prospective for Ni-Cu-PGE’s and REE’s.”
Capital raising
While firm commitments from new and existing sophisticated investors have already been received for about $600,000 worth of shares, there is still time for the company to complete the take-up of the placement of 19.64 million shares priced at 5c each.
Should this be met, the company will have raised $982,000 before costs.
The placement price of 5c represents a 13.8% discount to the last traded market price of 5.8c and comes with one free attaching option exercisable at 25c each and expiring on 18 July 2024 for every share subscribed.
Additionally, the placement will be issued in two tranches with the first 9.64 million shares to be issued under the company’s placement capacity while shareholder approval will be sought for the second tranche of 10 million shares.
Whaleshark IOCG potential
Whaleshark is located in Western Australia’s Ashburton region and is characterised by a large Proterozoic banded iron formation and granite intrusion beneath about 100m of Cretaceous sediments of the Northern Carnarvon Basin.
It has potential for discovery of a large shallow IOCG deposit like Ernest Henry, Starra, Carrapateena and Prominent Hill, but with the advantage of much shallower cover.
Miramar has identified strongly anomalous copper, cobalt, gold, silver and other IOCG pathfinders in shallow aircore drilling beneath surface geochemical anomalism.
This article was developed in collaboration with Miramar 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.