Two-tranche offering planned to finance exploration, working capital
By Devika Patel
Knoxville, Tenn., April 13 - Magma Metals Ltd. said it will raise A$20 million in a private placement of stock, selling 71.4 million ordinary shares at A$0.28 apiece in tranches of about 27.7 million shares and 43.7 million shares.
The price per share represents a 12.5% discount to the April 12 closing share price of A$0.32.
RBC Capital Markets was lead manager and bookrunner and Argonaut Ltd. was co-manager.
Proceeds will be used for exploration, corporate purposes and general working capital.
"The recent exploration results at Thunder Bay North highlight the excellent potential for additional mineralization at the project," executive chairman Keith Watkins said in a press release.
"The funds raised under the placement will allow us to undertake significant drilling programs and push towards achieving Magma's goal of delineating a much larger mineral resource at the project.
"In addition, the funds will also allow us to conduct further studies to optimize the outcomes of the recently released scoping study on Thunder Bay North," Watkins said.
Magma is a precious and base metals mining and exploration company based in Perth, Australia.
| Issuer: | Magma Metals Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$20 million
|
| Shares: | 71.4 million
|
| Price: | A$0.28
|
| Warrants: | No
|
| Announcement date: | April 13
|
| Stock symbol: | Australia: MMW
|
| Stock price: | A$0.32 at close April 13
|
| Market capitalization: | A$62.59 million
|
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