gold
Image credit: Stock

Mako Gold has received binding commitments for a two tranche Placement to raise $3.25 million before costs.

The placement will comprise the issue of 65 million new fully paid ordinary shares in Mako at an issue price of 5.0c per share as follows:

  • Tranche 1 of the Placement, comprising up to 11.3 million new shares (~$0.60 million), is not subject to shareholder approval and will fall within the Company’s placement capacity under ASX Listing Rule 7.1 and 7.1A
  • Tranche 2 of the Placement, comprising up to 53.7 million new shares (~$2.65 million), will be issued subject to shareholder approval at a general meeting

The Placement was strongly supported by existing shareholders and introduced several new, high quality domestic and international investors to the Mako share register.

The significant interest received provides strong validation of the Company’s flagship Napié Project and Tier-1 exploration team that has demonstrated track record of success in West Africa (discovered in excess of 2.6 Moz of gold for ASX-listed Orbis Gold leading to a subsequent c.$180 million takeover by TSX-listed African gold producer SEMAFO).

Together with existing cash reserves ($0.6 million) and the proceeds from the recent divestment of the Niou Project ($1.1 million), the Placement ensures Mako is well funded to execute a systematic exploration and growth strategy that aims to extend existing high grade mineralisation, test multiple high priority regional prospects and deliver a maiden Mineral Resource Estimate.

The funds will also be used to cover corporate costs and general working capital requirements. Drilling is expected to commence in early July and continue through the remainder of 2020.

Mako’s MD Peter Ledwidge comments:

“The overwhelming demand from institutional and sophisticated investors is a strong endorsement of Mako’s flagship Napié gold project and its exploration team. This capital raising provides us with balance sheet support for our extensive exploration program at Napié that aims to extend the shallow, high grade mineralisation discovered to date and test multiple highly prospective regional prospects.

Read more about mining in West Africa

“With a strike length of 30 km, multiple mineralised structures and less than 10% explored to date, we believe the Napié has potential to host multi-million-ounce gold deposits.

Read more about gold

“We are pleased to welcome a number of new sophisticated and institutional shareholders and thank our existing shareholders for their continued support.”

Read more about the Napié gold project