MacPhersons Resources has signed a silver sales agreement and launched a $6.6 million capital raising plan to advance development and exploration drilling at its Nimbus project near Kalgoorlie-Boulder.
The explorer announced late yesterday it had entered a $6.6 million placement agreement, priced at 41.8 cents per share, with USA-based RK Mine Finance, more commonly known as Red Kite, which has also signed the offtake agreement for silver output from Nimbus.
Casimir Capital acted as lead manager to the placement.
The offtake agreement will see Red Kite purchase 12 million ounces of silver over an unspecified time frame at market spot prices.
The funding and offtake deals are considered to be a major step forward for the company, chairman Ashok Parekh said.
“The addition of RK Mine Finance to our register represents a significant gain for MacPhersons in attracting a leading international metals merchant as an institutional shareholder with the company,” Mr Parekh said.
“RK Mine Finance brings a wealth of experience in marketing precious and base metal products and has a long term commitment to MacPhersons’ future production.
“The advantage of this offtake is that it is not hedged. It delivers MacPhersons the full upside to all increases in the spot price of silver.”
MacPhersons stocks were steady at 12:20PM, WST, trading at 38.5 cents.