Minotaur Exploration's (ASX: MEP) cash position will swell following a cornerstone investment at a significant premium to a private equity company, which includes an immediate cash injection of $1.05 million into Minotaur.
The deal provides Minotaur with a diverse funding channel through which to accelerate exploration activities within the Cloncurry district, with the company estimating it will hold cash reserves of $8.5 million at the end of June 2013, which would include this placement.
The investment from a private equity company will be comprised of a cornerstone placement of $750,000 for the issue of 4.2 million shares at $0.18 per share, with a 1 for 2 attaching option with a strike price of $0.30.
There will also be a further injection of $300,000 plus stamp duty for a 50% interest in Minotaur’s wholly-owned subsidiary, Minotaur Gold Solutions Ltd.
Minotaur and the private equity group jointly advance both copper-gold and gold focused exploration and development projects within Australia, including existing Minotaur assets - along with other opportunities from advanced exploration through to development.
Earlier in the month Minotaur entered into a joint venture with Falcon Minerals (ASX: FCN) to explore for copper-gold mineralisation on two Falcon tenements in the Cloncurry district of northwest Queensland
Minotaur to purchase the Scotia Project
Recently Minotaur Gold Solutions Ltd entered into a binding Sale and Purchase Deed with Breakaway Resources (ASX: BRW) to acquire the Scotia Project for $600,0000, which is located 65 kilometres north of Kalgoorlie in Western Australia.
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