Hartleys brokers Mustang raising

Local broker Hartleys has managed a $3.5 million capital raising undertaken by a Melbourne-based company exploring for rubies in Mozambique.

Mustang Resources raised $3 million through the placement of 75.5 million shares at 4 cents each to professional and sophisticated investors, and has undertaken a share purchase plan to raise a further $500,000.

The proceeds of the raising will be used to fund development work at Mustang’s Montepuez ruby project in Mozambique.

Mustang managing director Christiaan Jordaan said the additional capital strengthened the company’s balance sheet and provided the funds needed to continue development of the company’s ruby assets.

Mustang has also entered into an agreement with its largest shareholder, UK-based institutional investor Lanstead Capital, for an additional equity funding of $850,000, through the subscription of 21.3 million shares at 4 cents each.

Mustang shares were 28.5 per cent lower to 5 cents each at midday.