Australian gold mining company Meeka Metals has announced it has received firm commitments to raise $60 million (US$39 million) through a placement supported by both existing and new institutional investors.
The capital injection is set to fast-track the next phase of development at the company’s flagship Murchison gold project in Western Australia.
The placement was priced at $0.15 per share, representing a 4.1 per cent discount to the 20-day volume-weighted average price (VWAP) and a 10.3 per cent discount to the ten-day VWAP.
Meeka Metals will issue a total of 400 million new shares under its existing capacity in accordance with ASX Listing Rules 7.1 and 7.1A.
All new shares will rank equally with existing shares.
“With this funding in place the company is now focused on maximising the expanded open-pit mining opportunity, confirming the pathway to bring forward production with increased processing capacity and defining further growth opportunities with the drill bit,” said Meeka managing director Tim Davidson.
The funds raised, together with Meeka’s existing cash reserves, will be directed towards several strategic growth initiatives.
These include:
- Expansion and acceleration of open-pit operations through the mobilisation of a third mining fleet
- Acceleration of underground drilling programmes
- Validation of a processing expansion pathway that exceeds the current 600,000 tonnes per annum (tpa) capacity
Petra Capital acted as the sole lead manager and bookrunner for the placement, with Morgans Corporate serving as co-manager.
The Murchison gold project, which received final development approval in September 2024, hosts a significant resource of 1.2 million ounces at three grams per tonne gold on granted mining leases.
The project’s definitive feasibility study, released in December 2024, focuses on restarting the fully permitted Andy Well mill and outlines a 10-year production plan of up to 76,000 ounces per year.
Settlement of the placement is scheduled for 24 June 2025, with allotment of new shares on 25 June 2025.
