ASX-listed Mozambique focused exploration and project development company Mustang Resources has raised $5.75 million to advance the development of its graphite, diamond, and recently acquired ruby assets.
Mustang is aiming to fast track the planned bulk sampling programmeon the three highly prospective ruby prospecting and exploration licences that the company recently acquired from. The licences are located in the world-class Montepuezarea in Northern Mozambique. Short-term revenue prospects from bulk sampling activities are highly encouraging and could add significant value to Mustang.
Furthermore, the company is fully committed to the ongoing bulk sampling programme currently underway at the Save River diamond project, and also to advancing exploration activities at the Balama graphite project with the intention of defining a maiden JORC-compliant resource in the near term.
Funds have been raised from a range of Institutional and High Net Worth investors including a US$5 million investment from Lanstead Capital, a UK institutional investor that has completed a number of successful and value accretive investments in ASX-listed resources companies over the course of 2015.
Significantly, the capital raising was completed at a 6% premium to the 15-day VWAP prior to the issue. The issue price of the shares is $0.20 cents per share with approximately 30 million shares to be issued of which 25 million will be issued to Lanstead.
“Owing to the funds raised through first-grade institutional investor Lanstead , as well as additional capital raised through converting loans, Mustang is now well-funded to rapidly develop the Montepuez ruby project, which is conservatively targeting revenues of $60 million from a 12 to 15 month bulk sampling programme.
“Funds raised will also be used for working capital on the exploration and further bulk sampling of the Save River diamond project, as well as for the further funding to advance our precious gemstone and graphite projects, says Mustang Resources Chairman, Ian Daymond.
He also notes that investor interest in Mustang continues to grow and the company remains in discussions with other potential cornerstone investors that could provide further funding to advance its precious gemstone and graphite projects.
Source: Mining Review