Meeka raises A$60m to accelerate Murchison growth plans
Gold developer Meeka Metals has secured firm commitments for a A$60-million institutional placement to fund growth initiatives at its flagship Murchison gold project in Western Australia.
The placement, priced at A$0.15 a share, received strong support from existing institutional shareholders, as well as new domestic and international investors. The offer represents a 4.1% discount to Meeka’s 20-day volume-weighted average price (VWAP) and a 10.3% discount to the ten-day VWAP.
With the new capital, Meeka plans to fast-track openpit mining by mobilising a third mining fleet comprising a 200 t digger and 140 t truck fleet. Proceeds will also fund growth drilling at both openpit and underground targets and support studies to expand processing capacity beyond the current 600 000 t/y.
“With this funding in place the company is now focused on maximising the expanded openpit mining opportunity, confirming the pathway to bring forward production with increased processing capacity and defining further growth opportunities with the drill bit,” said MD Tim Davidson.
The placement will be completed using Meeka’s existing placement capacity with a total of 400-million new shares to be issued, ranking equally with existing shares.
Petra Capital acted as sole lead manager and bookrunner, with Morgans Corporate as comanager.
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