Mako Gold has secured binding commitments to raise $10 million to charge an accelerated exploration program and growth strategy at the Napiè gold project in Côte d’Ivoire, West Africa.
The placement is comprised of up to 125 million shares in Mako priced at 8 cents per share and includes strong support from new and existing investors.
According to Mako, $5.1 million of the shares raised will not require shareholder approval, while the remaining $4.9 million will be issued subject to shareholder approval at a general meeting in August.
The placement has received cornerstone support by North American resource fund Dundee Goodman Merchant Partners, which has provided a binding commitment for $3 million of shares.
Dundee Goodman Merchant Partners will retain a 9.9 per cent holding in Mako’s pro-forma issued capital after the placement is completed.
Mako managing director Peter Ledwidge welcomed the investor support.
“We are extremely pleased by the overwhelming support from quality domestic and international institutional investors,” he said.
“Attracting such high-quality institutional investors speaks to the potential of the project and experience of our team.”
Ledwidge said the placement would pave the way for the company’s exploration and drilling foothold at Napiè
“Proceeds of the placement will strengthen Mako’s balance sheet and provide a pathway to accelerate exploration at the Tchaga Prospect on the Napié Project as we move towards and beyond a maiden mineral resource estimate,” he said.
“The funds raised will also allow us to implement significant drill programs on other prospects at Napié and to fast-track exploration on our Korhogo Project.
“We are pleased to welcome a number of new institutional shareholders to our register and sincerely thank our existing shareholders for their continued support.”
Mako will aim to extend the consistent high-grade, shallow gold mineralisation at Napiè’s Tchaga prospect and also complete infill drilling for its maiden JORC (joint ore reserves committee) resource.
The junior explorer will also use the funding to test new and existing high priority targets at Napiè and exploration and drilling campaigns at the Korhogo project in Côte d’Ivoire and the potential acquisition of new projects.
Mako will have a cash balance of $15 million following the placement.