Musgrave Minerals Ltd (ASX:MGV) (OTCMKTS:MGVMF) (FRA:6MU) has closed its share purchase plan (SPP) early after it exceeded the targeted amount of $2 million, with subscriptions received to date in excess of $3.2 million, subject to final reconciliation.
The support for the SPP follows the successful completion of Musgrave’s placement, which raised $16 million last month.
No further applications accepted
Any further applications received after 5 pm (Perth time) on January 12, 2021, will not be accepted under the SPP and application monies will be returned in full to the applicant.
As per the terms of the SPP offer document, the directors will determine the scale back of applications, if any, and a further announcement will be made to the ASX.
Musgrave expects to issue the new fully paid ordinary shares in the company, which will rank equally with existing shares from their date of issue, on 20 January 20, 2021.
The new shares will be issued at $0.36 each, which is the same issue price paid by investors under the placement.
Accelerate exploration and development
Proceeds from the placement and SPP will be used to accelerate exploration and development activities at Musgrave's flagship Cue Gold Project in WA, including:
➢ Drilling of around 30,000 metres to test high-grade and high-priority gold targets identified in recent regional drilling, including resource definition drilling of the new White Heat discovery;
➢ Commencement of pre-feasibility studies on the Break of Day and Lena deposits;
➢ Continuation of studies to inform the mining proposal approvals;
➢ Further conversion of inferred resources into the higher confidence indicated category at Break of Day and Lena; and
➢ Continuing the successful regional exploration drilling program.