Deal raises funds for company's exploration activities in Madagascar
By Devika Patel
Knoxville, Tenn., Nov. 24 - Malagasy Minerals Ltd. said it has negotiated a private placement of shares. The deal will raise A$1.09 million.
The company will sell 16 million ordinary shares at A$0.068 apiece, a 15% discount to the Nov. 23 closing share price of A$0.08.
Proceeds will be used to accelerate exploration activities within the company's minerals portfolio in Madagascar.
Malagasy's managing director, Steve Goertz, said the capital raising would enable the company to expand its exploration efforts in Madagascar, with substantial drilling and exploration planned next year across its key projects in conjunction with geophysics and other exploration techniques and modeling to assist in refining the search radius for prospective sulphide mineralization.
"We are very excited about the potential of both the Ampanihy and Vohibory Projects, and we expect to be in a position to refine our exploration targeting significantly as a result of the initial drilling undertaken this year," Goertz said in a news release.
"While the initial hole at the Ianapera Project at Ampanihy did not deliver economic mineralization, the initial drilling has provided us with important geological information and will act as a pathfinder to substantial accumulations of nickel-copper-PGE mineralization," he continued.
"As with any greenfields exploration project, it's still early days and there's lots of work to do, but we are very encouraged by what we have seen so far and we believe the discovery potential of this project is significant," Goertz added.
The company also said it plans to raise A$2.13 million through a fully underwritten pro rata non renounceable entitlement issue of one share for every four shares held by shareholders at the same price as the placement.
The mineral exploration and project evaluation company is based in West Perth, Australia.
| Issuer: | Malagasy Minerals Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$1,088,000
|
| Shares: | 16 million
|
| Price: | A$0.068
|
| Warrants: | No
|
| Manager: | Shaw Corporate Finance Pty Ltd. (lead)
|
| Pricing date: | Nov. 24
|
| Stock symbol: | Australia: MGY
|
| Stock price: | A$0.08 at close Nov. 24
|
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