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Mustang Resources Ltd raises funds for ruby project in Mozambique

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Mustang Resources Ltd (ASX:MUS) has received commitments to raise $1 million via a share placement to advance its Montepuez Ruby Project in Mozambique.

The placement was made to professional and sophisticated investors at an issue price of $0.04 per share.

Last week, Mustang reported that it recovered ten rubies, totalling 2.61 carats, from initial trenching activities at Montepuez.

The Montepuez Ruby Project consists of three licenses covering 15,800 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields PLC (LON:GEM) in 2012.

Mustang is currently undertaking its Phase 2A exploration program at Montepuez, comprising strategic surface pitting, sampling and processing activities in order to identify ruby-bearing gravels.

The new funds will be used to scale up bulk sampling program with the aim of recovering rubies for sale as soon as marketable parcels are available.

Furthermore, data gathered during the current program will be utilised to complete a JORC compliant resource estimate and feasibility study.

The new $1 million capital raise is on top of a $2.5 million cash balance as at 30 June 2016.

Mustang also has interests in the Save River Diamond Project, and the Balama Graphite Project in Mozambique.

 

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