Mako Gold Ltd (ASX:MKG) has received binding commitments for a two-tranche placement to raise $10 million before costs and is now fully funded to deliver an accelerated exploration program as part of its growth strategy at the flagship Napié Gold Project in Côte d’Ivoire.
The placement, which was strongly supported by new and existing institutional investors, will comprise the issue of up to 125 million new fully paid ordinary shares in Mako at an issue price of 8.0 cents per share.
Promisingly, Mako has also received cornerstone support of $6.3 million from high-quality North American and European strategic investors including Dundee Goodman Merchant Partners, DELPHI and Sparta AG.
Mako managing director Peter Ledwidge said: “We are extremely pleased by the overwhelming support from quality domestic and international institutional investors.
“Attracting such high-quality institutional investors speaks to the potential of the project and experience of our team.
“Proceeds of the placement will strengthen Mako’s balance sheet and provide a pathway to accelerate exploration at the Tchaga Prospect on the Napié Project as we move towards and beyond a maiden mineral resource estimate.
“The funds raised will also allow us to implement significant drill programs on other prospects at Napié and to fast-track exploration on our Korhogo Project.
“We are pleased to welcome a number of new institutional shareholders to our register and sincerely thank our existing shareholders for their continued support.”
Potential new projects
The placement has ensured that Mako is well funded to execute its strategic plan that includes, accelerated exploration and drilling campaigns and testing new and existing high priority targets at the Napié Project.
The company is also aiming to extend the consistent high-grade, shallow gold mineralisation identified to date at Tchaga and to complete infill drilling to underpin its maiden JORC resource at this prospect.
In addition, Mako has plans for exploration and drilling campaigns at the Korhogo Project located within 30 kilometres of Barrick Gold Corp’s (TSX:ABX) Tongon Gold Mine.
Lastly, the company targets to acquire potential new projects in the near future.
Discovery Capital Partners and Dundee Goodman Merchant Partners acted as joint lead managers to this placement.
The latter cornerstoned the placement with a binding commitment to subscribe for around 37.8 million shares (approximately $3.0 million) and will emerge with a holding of 9.9% in Mako’s pro-forma issued capital.
Mako also secured binding commitments to subscribe for around 41.25 million shares from two strategic German Institutions: Delphi Unternehmensberatung AG, the parent company of Deutsche Balaton AG, and Sparta AG, a subsidiary of Deutsche Balaton.
DELPHI and Sparta will collectively emerge with a holding of 12.7% in Mako’s pro-forma issued capital following completion of the placement.
Mako’s issue price of 8.0 cents represents a 12.1% discount to the company’s last close on July 5, 2021, of 9.1 cents, a 7.8% discount to the 5-day volume-weighted average price (VWAP) of 8.68 cents and a 7.5% discount to the 15-day VWAP of 8.65 cents.
Placement shares will rank equally with existing fully paid ordinary shares and settlement of tranche 1 is expected to be completed on Wednesday, 14 July 2021.
Subsequently, settlement of tranche 2 of the placement is expected to be completed in mid-August 2021 and subject to prior shareholder approval at a general meeting to be scheduled.
Tranche 1 of the placement has been conducted pursuant to Mako’s existing placement capacity under ASX listing rules 7.1 and 7.1A.
The company will issue a total of 38,586,240 new shares under listing rule 7.1 and 25,724,160 new shares will be issued under listing rule 7.1A.
- Ephrems Joseph