Marmota Limited (ASX: MEU) is an ASX listed metals and mining company. Currently, the company is working on three projects Gawler Craton gold project, copper coast of the Yorke Peninsula and Junction Dam uranium project.
On 16th April 2019, the company announced that it has received the commitments to raise capital up to $1 million via a share placement to sophisticated and professional investors. Under the placement the company will issue 62.5 million fully paid ordinary shares at a price of 1.6 cents per share, having a total value of $1 million (before costs). All the investors willing to participate in the placement will be eligible to receive exploration tax credits for the 2018-19 financial year under the Junior Mineral Exploration Incentive (JMEI) of the Federal Government. The company does not require the shareholders' approval for the placement as it is being carried out of the Company’s existing placement capacity under listing rule 7.1. The new equity shares will rank equally with all other fully paid ordinary shares on issue.
Use of Funds
The proceeds from the placement will be directed towards the working capital. According to the company after the placement, sufficient capital would be there to fully fund the next drilling program to expand the Aurora Tank gold discovery which includes
- Extensional drilling which would be guided by the latest biogeochemical results
- Reconnaissance drilling would also be carried out to test newly identified gold targets at Aurora Tank
The Chairman of Marmota, Dr Colin Rose stated the company has already received outstanding high-grade gold intersections at Aurora Tank and new gold targets have been announced based on its proprietary tree-sampling program. Now the company has the largest, most interesting and exciting drill program to date, and it is fully funded to execute that pathway.
With respect to this announcement, on 12th April 2019, the company had requested the Australian Securities Exchange (ASX) to halt the trading of company’s securities for this pending announcement. ASX accepted the request and initiated a trading halt as requested from 12th April 2019. Under the term of the trading halt, ASX would uplift on commencement of trading on 16th April 2019 or when the company disseminates the announcement to the market, whichever is earlier.
On 13th March 2019, the company announced its financial results for the half year ended 31st December 2018. It reported a net loss after income tax at $189,824 which rose from pcp’s net loss of $129,359. The net cash at the end of the year decreased from $1.52 million to $664,962. During the reporting period, the company focused on exploring its highly prospective gold tenements in the Gawler Craton with two successful drilling programs were being carried out.
The market capitalisation of the company is A$11.1 million. On the technical front, the stock closed 5.8% lower at A$0.016 which is its intraday low as of 16th April 2019. In the last six months, the stock has delivered a return of 6.2%.