Mustang to raise up to $4.4 million for exploration of high-grade Caula Graphite Project

Published at Feb 22, 2018, in Small Caps

Mustang Resources (ASX:MUS) has announced that it will raise up to $4.43 million dollars via a one-for-four non-renounceable entitlement issue at 2.3 cents per share.

The offer price is a 23 per cent discount to the 15 day volume weighted average price, with proceeds to advance bulk sampling and exploration activities at the company’s Montepuez Ruby Project and Caula Graphite Project.

Regius Resources Group Ltd., which is the company’s largest shareholder (holding 7.74 per cent), will take up A$200,000 of its entitlement in the raising. Regius Non-Executive Chairman Ian C Daymond will also absorb his full entitlement.

MUS Managing Director Dr. Bernard Olivier spoke on the capital raising, “This entitlement offer provides shareholders with a further opportunity to participate in Mustang’s growth.

“We believe we are well on track to establishing Montepuez as a world-class ruby project,” he said.

“The ongoing ruby bulk sampling and exploration campaign in coming months will be funded predominantly by this raising as we continue to refine our ruby marketing strategy with increasing market intelligence.

“Equivalent funds will be dedicated to exploration at the high-grade Caula Graphite Project aimed at increasing the JORC Resource and fast-tracking feasibility studies as part of our strategy to supply the global lithium battery market.”

Of course, as with all minerals exploration especially in high-risk regions such as Africa, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.

Please note that this share entitlement is only available to existing shareholders, existing shareholders interested in participating in the offer can find the offer document here.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

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