Mount Hope Mining has raised $2.48 million through a placement and share purchase plan to accelerate drilling at its Mt Solitary gold prospect and the broader 7.5km gold corridor in the prolific Cobar Basin.
- Placement raised $1.23 million at $0.20 per share, oversubscribed
- Share Purchase Plan (SPP) launched to raise up to $1.25 million
- Funds to accelerate drilling at Mt Solitary and 7.5km gold corridor
- SPP pricing below ASX 80% VWAP threshold, subject to regulatory approval
- Cobar Basin region experiencing strong exploration and development momentum
Capital Raise to Accelerate Exploration
Mount Hope Mining Limited (ASX, MHM) has announced a combined capital raise totalling $2.48 million, comprising a $1.23 million placement and a $1.25 million Share Purchase Plan (SPP). The placement, priced at $0.20 per share; a 7% discount to the last traded price; was strongly supported and oversubscribed by institutional, professional, and sophisticated investors. The SPP, offered at the same price, is open to eligible shareholders in Australia and New Zealand.
Strategic Focus on Mt Solitary Gold Corridor
The funds will be directed towards accelerating drilling activities at the Mt Solitary gold prospect and the extensive 7.5-kilometre Mt Solitary–Mt Solar gold corridor within the Mt Hope Project. This region, part of the prolific Cobar Basin in central New South Wales, is renowned for its rich polymetallic deposits, including gold, copper, zinc, and lead. Recent drilling at Mt Solitary has yielded promising high-grade gold intercepts, underscoring the potential for significant resource expansion.
Regulatory Considerations and Market Context
While the placement proceeded smoothly under existing ASX listing rules, the SPP faces regulatory scrutiny due to its issue price representing approximately 72.8% of the five-day volume weighted average price (VWAP), below the ASX’s 80% threshold. Mount Hope Mining is actively engaging with the ASX to seek necessary waivers or may pursue shareholder approval to ensure the SPP’s completion. Should these measures not be successful, the SPP will be withdrawn and application monies refunded.
Positioned in a Growing Mining Hub
Mount Hope Mining’s Managing Director Fergus Kiley highlighted the company’s strong positioning amid a surge of exploration, mine development, and mergers and acquisitions activity in the Cobar Basin. The region benefits from established infrastructure, including nearby operating mills and a skilled workforce, providing a solid foundation for advancing the company’s exploration targets. The capital raise reflects growing investor confidence in Mount Hope’s strategy and the quality of its portfolio.
Looking Ahead
The company expects to settle the placement shares by early November, with the SPP offer scheduled to open shortly thereafter. The success of this capital raise will enable Mount Hope Mining to intensify its exploration efforts, potentially unlocking further high-grade mineralisation in a historically productive mining district.
Bottom Line?
Mount Hope Mining’s latest capital raise sets the stage for a pivotal drilling campaign that could redefine its resource potential in the Cobar Basin.
Questions in the middle?
- Will Mount Hope Mining secure ASX waivers or shareholder approval to complete the SPP at the proposed price?
- How will upcoming drilling results at Mt Solitary impact the company’s valuation and exploration strategy?
- What are the potential dilution effects on existing shareholders from the combined placement and SPP?