Mawson Resources raises $4.2 mln for Rompas exploration

Mawson Resources (TSE:MAW) says it will raise $4.2 million from a non-brokered private placement financing of up to 9.33 million units. 

The units, which will be made up of one common share and one half of a share purchase warrant, will be priced at 45 cents apiece. Every whole warrant will be exercisable to acquire one additional share of Mawson for 65 cents, for a period of two years from the date of closing. 

"That Mawson has received demonstrable interest to fund Mawson during these challenging times is a clear validation of the potential of the Rompas gold-uranium project," said the company's president and CEO, Michael Hudson, in a statement released late Wednesday.

"This funding will ensure we can continue to build our business in the Nordic countries around Rompas, maintain our exploration momentum and focus on shareholder interests by continuing to control overheads and investing their capital in the ground." 

Last month, the company said it discovered a new gold prospect, named Kaita, in the first month of field work at its Rompas project in Finland as the company updated investors on its summer exploration season. The Kaita prospect, it said, is located just 900 metres from the South Rompas drill area, and is made up of 26 surface mineralized sites, of which 11 have visible gold, discovered over a zone striking 415 metres. 

Mawson's plan is to maintain its momentum in the exploration program so far, with a company-wide budget of $2.5 million planned for this year. It said 10 local Finnish geologists are currently active in the field. 

The company said that the proceeds from the financing will be used to advance exploration work at Rompas, as well as for general working capital. 

The private placement announced yesterday will likely require shareholder approval, which will be sought at a special meeting to be held on August 30.                 

The company said the new Kaita discovery, which Mawson plans to prioritize to define drill targets over the coming months, is located outside the Natura 2000 biodiversity areas, and has been confirmed by a biologist to contain "low value forest and no significant plant species".