THE BOURSE WHISPERER: Musgrave Minerals (ASX: MGV) declared its recent Share Purchase Plan (SPP) closed and heavily oversubscribed.
Musgrave said the SPP, originally looking to raise $1.2 million, was strongly supported by shareholders to the point where the company received applications totalling $1.984 million.
Never being ones to look a gift horse in the mouth, the Musgrave Board elected to increase the original target and accept all valid applications received to allow all eligible shareholders who submitted valid applications to fully participate in the offer.
The funds raised from the SPP have already been designated to accelerate drilling and exploration activities already underway at the company’s Break of Day gold project, Mt Eelya copper‐gold massive sulphide discovery, and other targets and for additional working capital.
Musgrave said the additional funding will enable the company to progress the drilling of the high-grade gold mineralisation at Break of Day through to resource status and enable the company to meet its expenditure requirements under the Stage 1 Earn‐In to acquire 60 per cent of the Cue project.
“We are delighted with the strong support from our long term shareholders,” Musgrave Minerals managing director Robert Waugh said in the company’s announcement to the Australian Securities Exchange.
“The funds raised have strengthened the company’s cash position ahead of further drilling and exploration activities at the Cue project.
“We are very encouraged by the high-grade gold results at Break of Day and look forward to continuing to update shareholders with further results as drilling continues.”