Maximus Resources seeks $3.2 million to accelerate gold exploration and development programs
Mon April 29 2024
Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) is seeking to raise $3.2 million to accelerate gold-focused exploration drill programs and development work across its Spargoville gold projects, targeting shallow gold mineralisation for future resource growth.
The underwritten pro-rata non-renounceable entitlement offer is for one new fully paid ordinary share in Maximus for every three existing shares held as at 5.00pm (AEST) on May 3, 2024, at an offer price of $0.03 per new share.
This offer is underwritten by Argonaut PCF Ltd and Maximus expects to issue around 107 million new shares. Upon its completion, Maximus will have about 427.9 million shares on issue.
The offer price represents a 21.1% discount to Maximus’ last traded price of $0.038 on April 23, 2024, a 24.2% discount to the 5-day volume weighted average market price of Maximus’ shares to April 23, 2024.
Together with the company’s existing cash reserves, funds raised under the entitlement offer will be applied towards accelerating gold-focused exploration drilling programs and development work across the company’s Spargoville Gold Project, initial scout drilling at the company’s Larkinville Lithium Project and for general working capital purposes.
"Gold growth journey"
Maximus managing director Tim Wither said, “The entitlement offer provides existing shareholders continued exposure to Maximus’ fantastic gold growth journey, whilst exploration at our advanced Lefroy Lithium Project is to be funded and supported through our strategic joint venture with the South Korean Government mining agency - KOMIR.
"The company's planned drill programs at Spargoville include a follow-up campaign at the Wattle Dam Gold Mine, testing for potential offset of the high-grade shoot whilst continuing to advance several exciting regional gold targets.
"We thank Maximus’ largest shareholder, Beacon Minerals Limited, for its continued support of the Company in committing to subscribe for its full entitlement. We are delighted to have the ability to provide existing shareholders the opportunity to invest further in Maximus at this exciting time.”
Source: https://www.proactiveinvestors.com.au