Meeka Metals will issue a total of 400 million shares under the placement.
The placement was priced at A$0.15 per share, reflecting a 4.1% discount to the 20-day volume-weighted average price and a 10.3% discount to the ten-day volume-weighted average price. Meeka Metals will issue 400 million new shares, utilizing its capacity under ASX Listing Rules 7.1 and 7.1A. All new shares will have equal standing with existing shares.
Tim Davidson, Meeka’s managing director, stated: “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.”
The funds, combined with Meeka’s existing cash reserves, will support key initiatives at the Murchison gold project. These include expanding open-pit operations by deploying a third mining fleet, accelerating underground drilling programs, and validating a processing expansion beyond the current 600,000 tonnes per annum capacity. The project, located on granted mining leases, holds a high-grade mineral resource of 1.2 million ounces at three grams per tonne.
In September 2024, the Murchison gold project received final development approval. A definitive feasibility study, released in December 2024, detailed a ten-year production plan targeting up to 76,000 ounces of gold annually by restarting the fully permitted Andy Well mill.
Petra Capital acted as the sole lead manager and bookrunner for the placement, with Morgans Corporate serving as co-manager. The successful funding positions Meeka Metals to advance its strategic goals, enhancing production capacity and exploring further growth opportunities at the Murchison gold project.
