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