Metals Australia Limited (ASX: MLS) is into the metals and mining sector with its operations in exploration and development of Graphite. Western Australian Base Metal Projects and Namibian Uranium Projects are some of the main segments.
The company today, on 22 March 2019 update to its shareholders, on the first diamond drilling program at the Lac Rainy Graphite Project.
Magnor recently updated the company that the drilling equipment, field crew, and technical crews have been successfully mobilized to site at the Lac Rainy Graphite Project ahead of the first diamond drilling program. As per the anticipation, the diamond drill rig will be set up over this coming weekend, and the pads for the initial drill holes will be cleared at the same time. Drilling of the first hole is expected to commence in the next few days.
Geological teams have completed the assessment of the results from the channel sampling program, and all drilling holes and targets have been finalized at Lac Rainy. The company will provide regular updates to the shareholders as the program progresses.
Commenting on the recent activity ahead of the diamond drilling program at Lac Rainy, Director of Metals Australia Ltd, Mr Gino D’Anna, said that although the program was delayed by weather, the company is now in ready and very active with all the drill equipment, field crew and technical crews mobilised to site at Lac Rainy ahead of the diamond drilling campaign.
The company expects to be drilling the first hole in the next few days and are excited by what they will encounter. As mentioned by D’Anna the company believes that Lac Rainy is host to a potentially world-class high-grade natural flake graphite deposit and recent metallurgical testing has demonstrated its ability to produce high purity, large flake and high carbon graphite concentrate ideal for high-end technical applications.
The company recently announced to have completed a Private Placement of $630,000 (before costs) at an issue price of $0.0018 per share via the issue of 350,000,000 fully paid ordinary shares (Placement). Subscribers under the Placement will also be granted a free attaching option on a 1 for 1 basis with an exercise price of $0.0035 per share expiring on 1 June 2022, subject to the approval of shareholders.
This will result in the issue of 350,000,000 options and subject to the company meeting the conditions of the ASX, MLS will apply for quotation of the options. The Placement was subscribed by sophisticated and professional investors, those who are not related parties of the company and was well supported by several new brokers and high net-worth investors.
On the price-performance front, the stock of Metals Australia Limited was trading at $0.002 with a market capitalization of $4.68 million (AEST 04:00 PM). The stock has generated a negative YTD return of 37.50% and a negative return of 16.67% over the past one-month period. It had a 52-week high price of $0.007 with an average trading volume of ~2.02 million.
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