Musgrave Minerals Ltd (ASX:MGV) has raised $6 million before costs through a well-supported placement to corporate, institutional, professional and sophisticated investors, which will fund drilling of the new Starlight discovery at Break of Day within the Cue Project in WA.
Underpinned by new institutional investors as well as existing shareholders, the placement of 57.14 million shares at an issue price of 10.5 cents per new share was joint managed by Canaccord Genuity (Australia) Limited and Veritas Securities Limited.
Managing director Rob Waugh has welcomed several new institutional investors to the Musgrave register and thanked existing investors who participated.
He is pleased with the results of the placement considering the difficult economic conditions being experienced owing to the COVID-19 pandemic.
To advance Starlight drilling
“The funding will allow Musgrave to advance drilling of the new high-grade Starlight gold discovery and test other similar targets on the Cue Project," he said.
“Diamond drilling will follow leading to a scheduled resource update for Break of Day and Starlight late in Q3 2020.”
The shares will be issued on receipt of cleared funds.
Following the completion of the placement, Musgrave will have a cash balance of about $8.4 million.
Securities have traded up to 14% to an intra-day high of 13 cents.
Musgrave’s 1-metre sampling at Starlight earlier this month confirmed mineralisation over a strike of more than 100 metres with high-grade mineralisation remaining open to the west and down dip.
Best results included 3 metres at 118.4 g/t from 72 metres, including 1-metre at 351.2 g/t from 73 metres, and 55 metres at 2.8 g/t from 97 metres, including 1-metre at 61.4 g/t from 97 metres.
The RC drilling program consisted of 13 holes for 2,490 metres.