Manhattan Raises $2.2M at 16.6% Discount to Fund Hook Lake Surveys

Capital Raising to Propel Exploration

Manhattan Corporation Ltd (ASX, MHC) has successfully secured firm commitments to raise approximately $2.2 million through a placement of new shares to sophisticated and professional investors. This capital injection comes shortly after the company’s acquisition of the Hook Lake Project, signalling a clear intent to accelerate exploration efforts in this promising mining venture.

The placement price of $0.02 per share represents a 16.6% discount to the last traded price, a strategic move to attract investors and ensure swift capital raising. Notably, the placement includes a $1 million cornerstone commitment from clients of Viaticus Capital and Astrotricha Capital, alongside John Hancock’s Family office, underscoring institutional confidence in Manhattan’s project pipeline.

Focused Use of Funds

The proceeds from the placement are earmarked primarily for advancing the Hook Lake Project’s exploration activities. Key planned expenditures include aeromagnetic surveys, field reconnaissance, mapping, sampling, and ground geophysics. These steps are critical in defining the project’s geological potential and guiding subsequent drilling programs.

Beyond exploration, a portion of the funds will support general working capital requirements, providing the company with operational flexibility as it navigates the early stages of project development.

Market and Strategic Implications

Shaw and Partners Limited acted as lead manager for the placement, facilitating the transaction under existing ASX placement capacities. The issuance of over 111 million new shares is expected to be completed by early August 2025, with these shares ranking equally with existing ordinary shares.

This capital raise not only strengthens Manhattan’s balance sheet but also positions the company to rapidly advance its exploration agenda at Hook Lake. The involvement of reputable cornerstone investors adds a layer of validation to the project’s prospects, potentially enhancing market perception and investor interest.

While the announcement provides clarity on funding and immediate exploration plans, the market will be keenly watching for updates on exploration results and any subsequent development milestones that could drive the company’s valuation higher.