Miramar Issues 185 Million Shares at 20% Discount, Funds Gidji Drilling
Miramar Resources has secured $409,000 through a Share Purchase Plan to fund further exploration at its promising Gidji JV Gold Project, while advancing a strategic joint venture with Sumitomo at Bangemall.
- Share Purchase Plan raises $409,000 at a 20% discount
- Funds earmarked primarily for Gidji JV Gold Project exploration
- Recent discovery of bedrock gold mineralisation near Northern Star’s 8-Mile Dam deposit
- Joint venture agreement secured with Sumitomo for Bangemall project
- Sale process initiated for non-core gold projects in Eastern Goldfields
Funding Boost for Gidji Exploration
Miramar Resources Limited (ASX, M2R) has successfully closed a Share Purchase Plan (SPP), raising $409,000 to advance its gold exploration ambitions in Western Australia. The capital injection comes at a 20% discount to recent trading prices, reflecting shareholder confidence in the company’s growth strategy. The funds will primarily support further drilling and geophysical surveys at the company’s 80%-owned Gidji JV Gold Project, where recent exploration has uncovered encouraging shallow supergene gold deposits and bedrock mineralisation.
Strategic Focus on High-Potential Gold Projects
Executive Chairman Allan Kelly emphasised the company’s intent to concentrate resources on its most promising assets. With a joint venture agreement recently secured with Sumitomo at the Bangemall project, Miramar can now allocate more financial and operational focus to Gidji. The proximity of Gidji’s discoveries to Northern Star Resources’ 314,000-ounce 8-Mile Dam gold deposit adds a layer of strategic significance, suggesting the emergence of a potentially lucrative gold camp.
Portfolio Rationalisation and Future Outlook
Alongside its exploration activities, Miramar has initiated a sale process for several non-core projects, including the Glandore and Randalls gold projects in the Eastern Goldfields region. This move aligns with the company’s strategy to streamline its portfolio and focus on assets with the highest potential for value creation. Meanwhile, the completion of a detailed magnetic and VTEM survey at Bangemall, co-funded by the Exploration Incentive Scheme, is expected to provide fresh insights to guide future drilling campaigns.
Market Implications and Next Steps
The successful SPP and the strategic JV with Sumitomo signal growing institutional and shareholder support for Miramar’s exploration approach. Investors will be watching closely for upcoming drilling results at Gidji, which could validate the early indications of a significant gold system. The company’s ability to monetize non-core assets will also be a key factor in its financial flexibility moving forward.
Bottom Line?
Miramar’s recent capital raise and JV partnership set the stage for a pivotal phase in its gold exploration journey.
Questions in the middle?
- What will the upcoming drilling results at Gidji reveal about the scale of the gold mineralisation?
- How will the joint venture with Sumitomo accelerate development at Bangemall?
- What impact will the sale of non-core projects have on Miramar’s balance sheet and focus?
