THE BOURSE WHISPERER: Magnetic Resources (ASX: MAU) received applications for approximately $3.1 million via a placement of new shares at 28 cents per share.
Magnetic Resources had initially sought to raise $2.5 million, but accepted oversubscriptions due to strong demand shown from existing and new shareholders.
The company indicated the funds raised will be predominately used at the Hawks Nest 9 project for a shallow program of 96 RC holes totalling 3360 metres, which is expected to be finished by May 2019 and a number of follow up deeper RC program starting with a 20 hole 3000m program in late June 2019.
Metallurgical and scoping studies will commence in August 2019 with additional funds used for general working capital requirements.
“The company is continuing to undertake an aggressive drilling program as it continues to define additional mineralisation and ultimately a resource,” Magnetic Resources managing director George Sakalidis said in the company’s announcement to the Australian Securities Exchange.
“These funds will allow the company to fully explore the known mineralisation and test targets at depth.”