- 01Raises $3.28m to complete Yandi South acquisition.
- 02Funds infill and extension drilling for a maiden resource estimate.
- 03Also backs first drilling at Mogul.
Macro Metals (ASX: M4M) has received firm commitments for a $3.28 million share placement to complete its acquisition of the Yandi South iron ore project in Western Australia from Western Iron Ore.
Under the terms, the company will issue 425.6 million new and fully paid ordinary shares to unrelated investors priced at $0.005 each to raise $2.128 million (before costs).
An additional 94.8 million shares will be issued to directors of the company who have subscribed for a total $474,000 shares subject to shareholder approval, with non-executive chair Tolga Kumova agreeing to convert a $626,000 unsecured short-term loan into 125.2 million shares on the same terms.
Funds will be applied to complete the Yandi South acquisition and conduct infill and extensional drilling to define a maiden mineral resource estimate for the project.
Shareholder and Market Support
Managing director Simon Rushton was pleased with the strong shareholder and market support for the placement.
“This capital injection represents a clear endorsement of our business strategy and prospects and has enabled us to complete the Yandi South acquisition with absolute confidence in our ability to execute our plan to fast-track project definition and development,” he said.
“We will now undertake infill and extensional drilling and obtain the requisite geological and metallurgical information to progress commercial discussions and accelerate the approvals process to get the project dig ready in the shortest order of time.
“Placement funds will also be used to execute our first drilling campaign at the Mogul project, which we have determined holds several high-priority and substantial induced polarisation geophysics targets.
“The occurrence of multiple gossans being mapped along the strike of the regional north-south fault also points to the potential for clusters of mineralisation as seen at prominent VMS deposits such as Golden Grove.
“We have planned a drilling campaign to test the down-dip and along-strike extent of these anomalies which appear to be far more substantive in scale than what has been proven to date.”
Yandi South Acquisition
Macro acquired the Yandi South project in July for staged payments totalling $6.5 million plus a production royalty, covering three granted exploration licences spanning 56 square kilometres with a historical indicated mineral resource estimate of 4.28 million tonnes at 55.8% iron.
Macro has additionally applied for 46 sq km of adjoining exploration tenure that would expand its wholly owned position in the district to approximately 100 sq km if granted.
Yandi South is located 17km southeast of Macro’s 27.3%-owned Extension iron ore project, with the company eager to leverage synergies between both assets.
The company will also apply proceeds from the raising to a drilling campaign at the Mogul volcanogenic massive sulfide project in WA, as well as infill and extensional work at the Gibraltar East gold project.
Macro shares Gibraltar East with Renegade Metals under a mining services and profit share agreement.
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