Megado Minerals Secures A$780k to Advance Iberian Copper Exploration
Megado Minerals has completed a A$780,000 placement to institutional investors, issuing 39 million shares and attaching options to fund its Iberian Copper Project and working capital needs.
- Raised A$780,000 via placement of 39 million shares at A$0.02 each
- Placement includes free attaching options exercisable at $0.03 until June 2030
- Placement shares issued at a 16.7% discount to last traded price
- Funds earmarked for Iberian Copper Project exploration and general working capital
- Additional 3 million options granted to consultants for services
Strategic Capital Raise
Megado Minerals Limited (ASX, MEG) has successfully completed a placement raising A$780,000 through the issuance of 39 million fully paid ordinary shares at A$0.02 per share. This capital raise was directed exclusively to two unrelated institutional shareholders, reflecting continued confidence from sophisticated investors in Megado’s exploration strategy.
The shares were issued at a 16.7% discount to the company’s last traded price on 2 July 2025, yet at a premium of 17.2% to the 15-day volume weighted average price, striking a balance between shareholder value and raising necessary funds efficiently. Notably, the placement was executed without broker involvement, avoiding fees and commissions, which is somewhat uncommon in such transactions.
Incentivising Future Growth
Alongside the placement shares, Megado issued 13 million free attaching options exercisable at $0.03 each, valid until June 2030. This long-dated option structure provides investors with potential upside participation should the company’s exploration efforts bear fruit. Additionally, 3 million options on identical terms will be granted to non-related consultants as recognition for their services, aligning incentives across stakeholders.
Focus on Iberian Copper Project
The funds raised will primarily support ongoing exploration activities at the Iberian Copper Project, where Megado holds an 80% interest. This project spans 956 square kilometres and includes at least a dozen historic copper mines dating back to the 1800s, offering significant potential for new discoveries. The company also intends to bolster its general working capital position, ensuring operational flexibility as it advances its portfolio.
Megado’s broader asset base includes lithium and gold projects in Quebec, Canada, and a rare earth project in Idaho, USA, but the current capital injection clearly signals a strategic emphasis on copper exploration in Europe’s Iberian Peninsula.
Looking Ahead
With settlement expected imminently, Megado is positioned to accelerate its exploration programs. The absence of broker fees and the involvement of institutional investors suggest a streamlined and confident capital raise. However, the market will be watching closely to see how these funds translate into tangible exploration results and whether the attached options will be exercised in the years ahead.
Bottom Line?
Megado’s latest capital raise sets the stage for intensified copper exploration, but the real test will be turning potential into production.
Questions in the middle?
- Who are the institutional investors backing this placement and what is their strategic interest?
- What specific exploration milestones does Megado aim to achieve with the new funds?
- How might the exercise of options at $0.03 impact shareholder dilution and company valuation?
