Mount Burgess announces capital raising to progress Kihabe-Nxuu Polymetallic Project

Highlights

• Mount Burgess Mining NL (ASX:MTB) announced a capital raising of AU$500,000.
• The capital raising will be made by way of a placement through issue of 100,000,000 fully paid ordinary shares.
• Funds will enable Mount Burgess to continue developing the Kihabe-Nxuu Polymetallic Zn/Pb/Ag/V/Ga/Ge Project in Western Ngamiland Botswana.

Mount Burgess Mining NL (ASX:MTB) has announced a capital raising of AU$500,000. The Company is currently developing the Kihabe-Nxuu Polymetallic Zn/Pb/Ag/V/Ga/Ge Project in Western Ngamiland Botswana. Funds are likely to enable the way forward for the Project.

Capital raising details

The capital raising will be made by way of a placement through the issue of 100,000,000 fully paid ordinary shares at an issue price of AU$0.005 per share- 24,082,889 shares under ASX Listing Rule 7.1 and 75,917,111 shares under ASX Listing Rule 7.1A.

In addition to shares being issued under LR 7.1, the Company is also taking advantage of its 10% facility available under 7.1A as approved by shareholders at the last AGM. This is an effective and timely method for Mount Burgess to raise funds under current market conditions.

Boutique capital raising platform, 180 Markets, has led the placement for Mount Burgess. Shaun Factor, Director of 180 Markets, is a substantial existing holder and has cornerstoned the placement.

A commission fee of 5% is payable to the lead manager of the placement. No other material fees or cost are being incurred in connection with this issue.

Use of funds

The funds will enable Mount Burgess to continue developing its resources at the Kihabe-Nxuu Polymetallic Zn/Pb/Ag/V/Ga/Ge Project.

©2022 Kalkine Media®

Notably, in the quarter ended 31 March 2022, Mount Burgess reported significant progresses-

• At Nxuu, samples from diamond core drilling conducted last year were submitted for assaying. Results from seven drill holes have been incorporated to update the assay data base of the deposit.
• At Kihabe, a review was conducted on all Gallium assays received to date, given the recent increase in the Gallium price. Samples were sent to the University of Tasmania to conduct mineralogical test work to confirm the host minerals for Gallium (Ga) and Germanium (Ge).
• To date, at Nxuu, 30 holes so far drilled have been assayed for Ga and at Kihabe, 7 holes drilled have been assayed.
• A MoU for a possible power supply was signed with Botala Energy.

Kihabe – Nxuu Polymetallic Project- an overview

The Project is situated in Prospecting Licence PL 43/2016, located on the Namibian border in Western Ngamiland, Botswana. The 1,000 sq km licence covers the entire portion of a neo-proterozoic belt of SEDEX style mineralisation on the Botswana side of the border.

Of the two main deposits established to date, Kihabe and Nxuu, Mount Burgess intends to develop the Nxuu Deposit first as this presents as a potential shallow, low cost, low risk open cut operation.

On 27 May 2022, MTB traded at AU$0.005 with a market capitalisation of AU$4.55 million.