Meteoric Resources’ SPP Gets heavily Oversubscribed with Applications Totalling $1.76 Mn

MEI

Exploration company, Meteoric Resources NL (ASX: MEI) has announced that the Share Purchase Plan (SPP) announced on 21 March 2019 to raise up to $750,000 at $0.01 per share has closed on 12 April 2019 heavily oversubscribed with applications totalling $1.76 million.

The SPP applications are currently being reviewed by the company’s Board. The Board will scale back applications using its absolute discretion.

On 21 March 2019, the company announced that it has entered into a Binding Terms Sheet with Crusader Resources to acquire the Juruena and Novo Astro Gold Projects in the state of Mato Grosso in Central Brazil.

On 15 April 2019, Crusader Resources Limited announced that the Share Sale Agreement for the sale of the Juruena and Novo Astro Gold Projects in Brazil to Meteoric Resources has been executed and all material conditions have been met and completion of the sale.

The total cost of the Acquisition was $3 million in cash and milestoned MEI Shares as follows:

  • $1 million cash upon Completion of the Acquisition.
  • 50,000,000 MEI Shares on Completion, escrowed for 12 months (being $500,000 in MEI Shares @ 1¢ per Share) issued pursuant to MEI’s listing rule 7.1 placement capacity;
  • Subject to MEI Shareholder approval, $750,000 in MEI Shares upon a decision by the MEI Board to commence mining at Juruena and/or Novo Astro pursuant to a full mining licence, with the number of MEI Shares calculated on a 5-day VWAP on the date of the decision to mine. In the event Shareholder approval is not obtained then MEI shall pay $750,000 in cash to Crusader.
  • Subject to MEI Shareholder approval, $750,000 in MEI Shares upon the delineation of a JORC Resource of not less than 400,000 ounces Au at Juruena and/or Novo Astro, with the number of MEI Shares calculated on a 5-day VWAP on the date of the delineation. In the event Shareholder approval is not obtained then MEI shall pay $750,000 in cash to Crusader.

For the half year ended 31 December 2019, the company reported net loss after tax of $1,072,750. As at  31 December 2018, the company had net assets of $2,109,542 and cash assets of $2,072,926.

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During the half year period, the company actively explored its Canadian Cobalt Portfolio and reviewed potential acquisitions and investments, across a range of commodities and jurisdictions, with a particular emphasis on gold and base metals.

The Company’s Canadian Cobalt Portfolio currently consists of seven cobalt projects; six located in areas in Eastern Ontario historically known for silver and cobalt production, including the Cobalt town region which demonstrate potential for high grade cobalt mineralisation, and one in West Ontario, targeting cobalt-copper-gold mineralisation. Throughout the half year period, the company continued its systematic exploration program across its entire cobalt portfolio, which efforts have to date identified a total of 38 target areas.

At the time of writing, i.e., on 16 April 2019 AEST 3:41 PM, the stock of the company was trading at a price of A$0.013 with the market capitalisation of ~A$8.6 Million.


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