Maronan Metals Limited secures A$20M placement commitments
Kinterra would lift its interest to 22.99 per cent, with both share tranches conditional on approval at the Nov. 4 annual meeting.
Mara Quinlan
Maronan Metals Limited ASXMMA said on Tuesday it had secured firm commitments for an A$20 million share placement at A$0.40 apiece, subject to shareholder approval. The proposed 50 million new shares would fund work beyond its already funded drilling and studies program at the Maronan project in Queensland.
Maronan shares ASXMMA edged higher to A$0.43 on the Australian Securities Exchange at 2:33 p.m. AEDT on Tuesday, according to Google Finance. Maronan is an exploration and development company advancing a silver-lead deposit with additional copper-gold mineralisation in the Cloncurry region.
Kinterra Capital would increase its relevant interest to 22.99 per cent on completion, according to the release. The company's largest shareholder is subscribing for about 20.9 million shares across two tranches.
The placement needs approval at the Nov. 4 annual meeting because Maronan has no capacity under ASX Listing Rules 7.1 and 7.1A. The first shares are scheduled for issue on Nov. 10, with Kinterra's second tranche following on Dec. 1.
Google Finance's ASXMMA page reported 314.27 million shares outstanding at 2:33 p.m. AEDT on Tuesday. Against that base, the new shares would represent about 13.7 per cent of the expanded capital, reducing a non-participating holder's percentage ownership by the same proportion.
The company reported a 2.3 per cent discount to its five-day volume-weighted average price through Oct. 9. Maronan's Oct. 13 securities notice confirms no attaching securities and says Taylor Collison Limited is lead manager, with the placement not underwritten.
Taylor Collison can receive a capital-raising fee of up to 4 per cent, plus goods and services tax, on funds from investors it introduced. Both tranches depend on shareholder approval, and the release says no new shares will be issued if approval is refused.
The Oct. 13 budget allocates A$7.2 million to drilling deeper copper and Northern electromagnetic targets, alongside infill work to expand indicated resources and upgrade some material to measured. Engineering receives A$4 million, while metallurgical sampling and flotation tests receive A$1 million.
The Oct. 13 plan allocates A$5 million to permitting and early site works, including the mining lease application and associated approvals. Another A$2.8 million covers working capital and placement costs; the company says these spending intentions may change with results and regulatory outcomes.
"Bringing that work forward is expected to shorten the path to key project decisions," managing director Richard Carlton said in the release.
Maronan expects a third drill rig to start in early November and plans to secure a fourth by December. The expanded drilling program is scheduled to finish in the fourth quarter of its 2027 financial year.
Subject to approval, the first tranche is scheduled to settle on Nov. 9, with Kinterra's second tranche settling on Nov. 30. The timetable is indicative and may change.
Maronan's next scheduled step is dispatch of the supplementary meeting notice and replacement proxy form no later than the week beginning Oct. 19.
