The placement to a small number of institutional and sophisticated investors will raise $2.7 million via the issue of shares at 3.2 cents each, representing an 8.4% premium to Meteoric’s 30-day average share price.
Funds raised by the placement will be used to accelerate exploration at the company’s Juruena and Novo Astro Gold Projects in Brazil where initial exploration is highlighting extremely positive results.
Two rigs currently on site
Meteoric managing director Andrew Tunks said: “Recent exploration at the Juruena and Novo Astro prospects has increased the company’s confidence in the discovery potential of Meteoric’s Brazilian assets.
“Over the last few weeks, diamond drilling at Juruena commenced and two rigs are currently onsite drilling double shifts at Dona Maria (Juruena).
“Additional first pass exploration has been underway 30km to the east at Novo Astro and has recognised thick zones of alteration and mineralisation within basement rocks that have been the target of extensive artisanal mining (ASX:MEI 01/08/2019).
Additional drilling planned
“It is the company’s opinion that the targets at Novo Astro warrant a large and detailed drilling program far in excess of its early expectations.
“The new capital injection will be used to bring in additional drilling capacity to effectively run two exploration teams working in tandem, one at Juruena and one at Novo Astro to immediately grow an understanding of the geology and gold distribution at these exciting bonanza-grade gold projects.
“Crucially the Novo Astra program can now scale up without affecting the company’s strong focus on Juruena, allowing both projects to be tested over the coming months, concurrently expanding and fast tracking our initial plans.”