West Perth-based minerals group Magma Metals Ltd will raise $6 million through a placement to fund its exploration projects in Canada and Australia.
West Perth-based minerals group Magma Metals Ltd will raise $6 million through a placement to fund its exploration projects in Canada and Australia.
The full text of a company announcement is pasted below
Magma Metals Limited will raise $6.08 million by placing 16 million shares predominantly to clients of Southern Cross Equities.
The funds will be used to advance the companies exploration projects, particularly the Thunder Bay North Pt-Pd and Roe Ni-Cu projects.
Magma Metals Limited ("Magma") has received advice from Sydney-based stockbroking group, Southern Cross Equities, that it will place 16 million Magma shares predominantly to its sophisticated investor and institutional clients at a price of $0.38 per share to raise $6.08 million.
The funds will be used primarily to advance Magma's exploration projects as follows:
Canada:
- Drilling at Thunder Bay North and Beaver Lake to evaluate the potential for Pt-Pd resources.
- Drilling at Tib Lake to test the Pt-Pd potential of the East Dog River Fault Zone.
- Investigation of magnetic anomalies at TBN Regional to identify new Pt-Pd mineralised peridotites.
Australia:
- Drilling at Roe to evaluate the potential for a large tonnage Ni-Cu resource at the Green Dam prospect and test regional VTEM anomalies.
- Drilling at Mt Jewell to extend the GSP resource of 86,000t @ 2% Ni at depth.
- Drilling at Laverton to investigate the potential of the 40km-long Red Flag Ultramafic for Ni-sulphides similar to the adjacent Windarra deposit.
- Exploration of the Eastman Bore intrusion (Ni-Cu-PGE) and Koongie Park Formation (Cu-Zn) at Eastman.
- Exploration at Laura River for Ni-Cu-PGE, Cu-Zn & Cu-U deposits.
The placement will be completed in two tranches, with the initial 4.8 million shares to raise $1.8 million being issued using Magma's right to place up to 15% of its capital within a 12 month period without shareholder approval. This tranche is expected to be completed by next week. The issue of the remaining 11.2 million shares is subject to shareholder approval which will be sought at a General Meeting of Shareholders expected to be held in late July.
The Directors are appreciative of the support of Southern Cross Equities and the strong investor interest in the potential of the Company's projects and its exploration programs demonstrated by the success of this placement.
The Company advises that this is the announcement referred to in its request for a Trading Halt effected on 19 June 2007.
