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Highlights
- Mount Burgess is eyeing to raise AU$530,000 via a share placement at an issue price of AU$0.004 apiece.
- Three directors of MTB have agreed to apply for 7.5 million shares, subject to shareholder approval.
- Proceeds will be directed towards metallurgical testwork to investigate the recovery of germanium and gallium on site.
- The funds will also aid in meeting project and resource development costs.
Mount Burgess Mining NL (ASX: MTB) has announced a placement to raise AU$0.53 million by issuing over 132.4 million ordinary shares at an issue price of AU$0.004 apiece.
The placement price represents a 20% discount to AU$0.005 apiece, the last traded price.
The company shared that it has received firm commitments from sophisticated and professional investors for the placement. Three directors of MTB - Nigel Raymond Forrester, Robert Burns Brougham and Harry Warries would be applying for 7.5 million shares, subject to shareholder approval at the annual general meeting.
The placement shares are due to be issued on 2 August 2023.
The lead manager to the placement is GBA Capital, which will receive a 6% commission. Subject to shareholder approval, GBA will get 5 million unlisted options. The exercise price of the option is AU$0.01 apiece and the expiry date will be on or before 2 August 2025.
Use of Funds
MTB operates its Kihabe-Nxuu polymetallic project in Botswana.
According to the company update, the funds raised will be used to undertake metallurgical testwork to test for gallium and germanium recovery on site.
The funds will also be directed towards managing on-site project development costs, corporate administration costs and resource development costs.
MTB shares were trading at AU$0.004 per share at the time of writing on 26 July 2023.
