Mantle Mining surges after flagging a more focused gold operating strategy
Shares in Mantle Mining Corporation (ASX: MNM) opened nearly 30% higher on Wednesday morning after the company announced that it had successfully negotiated a revised payment schedule for Morning Star Gold NL (MCO) and Mantle with Chillee Limited, the prior ranking secured creditor of MCO.
This revised schedule replaces the $2 million that fell due on February 28, 2017. The new funding follows the completion of a private placement of $1.35 million at a 33% premium to the company’s last closing price.
Remember, however, that this is an early stage play and interested investors should seek professional financial advice if considering this stock for their portfolio.
From an operational perspective the new management team will be looking to progress mapping and sampling of the Stacpoole zone, part of the Morning Star gold mine. MNM also informed the market that it had received a number of competitive offers for its non-core projects in Queensland.
A more focused business with the benefit of capital from the recent placement, along with the potential for a cash injection from the sale of non-core assets should make for a much more attractive investment proposition, arguably accounting for today’s strong share price performance.