Mt Malcolm Mines raising up to $1.7m for gold exploration

Mt Malcolm Mines is raising up to $1.7m for gold exploration through a placement and entitlement offer.

• Mt Malcolm Mines raising up to $1.7m to fund Malcolm project exploration and development

• Firm commitments received for $700,000 placement while up to $1.04m will be raised through an entitlement offer

• Proceeds to be used for drilling, resource estimation, mine design and scoping study

Special Report: Mt Malcolm Mines is raising up to $1.7m through a placement and entitlement offer to support exploration and development at its Malcolm gold project near Leonora, WA.

The company has received firm commitments from sophisticated investors to raise $700,000 through a placement of shares at 2.3c each.

Additionally, Mt Malcolm Mines (ASX:M2M) will offer eligible shareholders one share priced at 2.3c each for every five shares held to raise up to $1.04m under an entitlement offer.

“The Mt Malcolm board is excited to receive strong support to accelerate work streams at our Malcolm project near Leonora, with a sharp focus on drilling programs and further development work at our high-grade Golden Crown prospect,” managing director Trevor Dixon said.

“We look forward to delivering solid outcomes in several key areas across our project portfolio.

“Rewarding new and existing shareholders with a consistent news flow from our geological and management teams whilst operating safely and in the best interest of all stakeholders of the business will be at the front of mind from our dedicated team at Mt Malcolm.”

Malcolm project

The 200km2 Malcolm project sits along the Keith Kilkenny Tectonic Zone of the northeastern Yilgarn Craton.

This zone is a significant regional structure, up to 5km wide, that is traceable over 300km from Kalgoorlie in the southeast up to Wiluna in the north.

It hosts numerous gold and nickel mines dotted along its length including Northern Star’s (ASX:NST) Carosue Dam operations east of Kalgoorlie and their Thunderbox mine north of Leonora.

M2M recently completed a bulk sampling program at the Golden Crown prospect, which is an historical producer.

The program has recovered ~320oz of gold from processing of 980 wet metric tonnes of high-grade material, validating the effectiveness of wet gravity recovery of coarse gold from Golden Crown mineralisation.

It also strengthened the company’s confidence in the economic potential of the prospect.

Funds from the capital raising will be used for further drilling, resource modelling, mine design and permitting, as well as a scoping study.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Mt Malcolm Mines raising up to $1.7m for gold exploration