
Australian mineral explorer Maronan Metals Ltd (ASX: MMA) has secured $7.15 million in funding through a share placement and share purchase plan to progress its Maronan Silver-Lead and Copper-Gold deposit in Queensland‘s Cloncurry region.
The company announced on Thursday that it received firm commitments of $5.65 million from institutional and sophisticated investors, as well as existing shareholders, through a placement of 23.5 million new shares at $0.24 each.
This represented a 16.2 per cent discount to the five-day volume-weighted average price.
In conjunction with the placement, Maronan is offering eligible shareholders the opportunity to participate in a share purchase plan (SPP) at the same $0.24 issue price, targeting an additional $1.5 million raise.
The funds will enable Maronan to continue resource growth and development activities at its advanced Maronan project, located just 90 kilometres north of the giant Cannington Silver-Lead-Zinc mine.
Key activities include drilling programs to further expand the high-grade silver-lead and copper-gold resources, completion of a scoping study on a potential starter mining zone, environmental studies, metallurgical test work, and initial work on a pre-feasibility study.
Veritas Securities Limited acted as the lead manager for the $5.65 million placement.
The SPP offer period will open on May 27 and close on June 11, unless extended.
Maronan’s Managing Director Richard Carlton said the capital raising puts the company in a strong financial position to unlock the significant growth potential of the Maronan deposit, one of Australia’s largest undeveloped silver resources.
Shares issued under the placement and SPP will rank equally with existing ordinary shares from their respective issue dates.