THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) has welcomed Westgold Resources (ASX: WGX) onto the company’s shareholding register.
Musgrave Minerals informed the market that Westgold subscribed for 48 million ordinary shares in the company by way of a share placement at a price of seven cents per share.
The $3.36 million investment by Westgold is at a 15.4 per cent premium to Musgrave’s 15-day VWAP and represents an undiluted holding of 15 per cent in the company.
Musgrave indicated it was currently in discussions with Westgold looking to study the commercialisation of Musgrave’s known deposits at the company’s Cue project in the Murchison region of Western Australia.
“The company is pleased to welcome Westgold to the Musgrave register,” Musgrave Minerals managing director Rob Waugh said in the company’s announcement to the Australian Securities Exchange.
“Westgold has three operating mills in the region of our Cue project, and is a highly regarded professional gold miner and processor.
“This is a positive result for Musgrave and a strong endorsement of the company’s projects, gold resources and upside exploration potential.
“The strong cash position will enable Musgrave to accelerate exploration while also progressing development studies on the existing Break of Day and Lena resources within its 100 per cent-owned Cue project.”
On completion of the Placement Musgrave Minerals will hold approximately $5.5 million in cash.