Musgrave Raises $5.5 Million Through Placement For Proceeding Gold Drilling At Lake Austin, Cue

On December 13, 2018, Musgrave Minerals Limited has announced that they have received firm commitments to raise $5.5 million via a placement of 59,782,609 shares to corporate, institutional, professional and sophisticated investors.

Musgrave Minerals Limited (ASX: MGV) is in a mineral exploration business. It operates gold and base metals. The company explores gold, silver, copper, lead, zinc, and nickel. The company was incorporated in 2010 and listed in 2011. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

This Placement was well supported with interest from resource funds new to the register as well as existing shareholders. It is expected that Placement shares will be issued on or around 19 December 2018. Under ASX Listings Rule 7.1, the Placement has been accepted using the company’s available placement capacity, and it comprises 49,049,918 shares which are issued at a price of 9.2 cents and under ASX Listings Rule 7.1A, 10,732,691 shares were issued at a price of 9.2 cents, which are approved by shareholders at the company’s 2018 Annual General Meeting.

The money raised by the company will be used towards promoting drilling of gold and achieving other gold targets on the Company’s wholly-owned Cue Project in Western Australia’s Murchison region.

For the Placement, both Veritas Securities Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers.

As stated by Musgrave Managing Director Mr. Rob Waugh, that backing allows Musgrave to secure three drill rigs in the new year to increase drilling at the stirring new Lake Austin North discovery and other targets. The management also likes to welcome all the new investors to the company and thank those existing investors who participated.

Financial performance of the company: Revenue was $81,570, down 35% compared to $125,625 in last year, a loss for the year was $315,601 as compared to $5,476,841 in last year, and loss per share is $0.07 as compared to $2.92 in the previous year.

September 2018 Quarter Results highlights: In Cue Project-Gold, New gold discovery at Lake Austin North which demonstrates potential to be an extensive system. Studies are continuing the Lena and Break of Day gold deposits to assess the potential for near-term development. At Cue, there are total project gold resources are 4.83Mt @ 2.84g/t Au for 441koz Au. In Corporate, there is a negotiation with Westgold on a Mine Management and profit-sharing agreement over the existing gold resources at Cue are continuing. At the end of September 2018 quarter, the company held $4.0 million in cash.

In the last six months, the price of the company has shown a positive return of 47.06 percent as on 4 December 2018 and 16.47 percent down over the past one month. Musgrave Minerals Limited shares are trading at $0.095 with a market capitalization of $32.37 million as on 13 December 2018.

The Top shareholders of Musgrave Minerals Limited are Westgold Resources Ltd (14.7%), Jetosea Pty Ltd (6.7%), Riggy and Boo Pty Ltd (3.3%), Silver Lake Resource Ltd (2.9%), and Independence Group NL (2.8%).


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