The SPP was well supported with the company receiving valid applications for a total of 9,786,219 new shares from eligible shareholders, totalling $3.523 million and exceeding the targeted raising of $2 million.
Given the strong support shown by shareholders, the board decided to exercise its discretion under the terms of the SPP to increase the size of the SPP and accept all valid applications without applying a scale back.
Notably, the SPP follows the successful completion of the $16 million share placement announced on December 14, 2020.
Funds to accelerate exploration
Musgrave is now well-funded to accelerate exploration, progress resource growth and commence PFS at the Cue Gold Project in WA.
The company plans to spend the funds on:
➢ 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.