Miramar’s oversubscribed $2.4m to accelerate Gigji gold exploration

Investors have demonstrated their confidence in Miramar and its Gidji joint venture project by oversubscribing for a $2.4m placement.

New and sophisticated investors subscribed for more than 14 million shares priced at 17c each – a 5.6% discount to the last traded price of 18c.

The placement includes one free attaching option exercisable at 25c and expiring in two years for every two shares issued.

Miramar Resources (ASX:M2R) is also offering existing shareholders the right to subscribe for one option priced at 1c for every two shares they hold under a fully-underwritten option rights issue. These have the same terms as the options issued under the placement.

Proceeds from the placement and option rights issue will be used to accelerate drilling programs across the Gidji project without affecting exploration across its other projects.

“This capital raising will allow for a step change in the pace of activity at Gidji, and we have multiple aircore, RC and diamond drill programmes lined up ready to commence in the short term,” executive chairman Allan Kelly said.

“We are very pleased with the response to the Placement and look forward to continuing to unlock the value of the Gidji JV Project for our shareholders.”

Gidji exploration

Miramar has completed aircore drilling at the Blackfriars and Highway targets with samples submitted for assaying.

Planning is now underway to test the Boorara North, 8-Mile and The Jog targets whilst follow-up of the recent high-grade gold results from the December 2021 aircore program, and testing of potential nickel sulphide targets, is also planned.

This comes barely a month after the company received high-grade assay results such as 1m at 11.8 grams per tonne gold from aircore drilling completed in December 2021 that extended the strike of the Marylebone prospect to over 2km.

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.