Mawson Resources says first tranche of $4.2 mln financing oversubscribed

Mawson Resources (TSE:MAW) says it has closed the oversubscribed first tranche of its non-brokered private placement financing, raising $2.57 million so far for its Rompas project in Finland. 

Last month, the company announced plans for a private placement financing of up to 9.33 million units a price of 45 cents apiece, but due to the oversubscribed first tranche, it is now planning to issue up to 9.34 million units for total proceeds of up to $4.2 million. 

Under the first tranche, Mawson issued 5.7 million units, with each unit made up of one common share of the company and one half of one share purchase warrant. Each whole warrant can be used to acquire one additional common share of Mawson at a price of 65 cents each, until August 2, 2015. 

The company said Tuesday that Sentient Global Resources Fund IV, part of a group of Mawson insider funds, has subscribed for 7.33 million units under the placement, investing a total of $3.3 million, with 3.7 million units issued in the first tranche. Sentient already holds more than 27 per cent of Mawson, according to the company's statement, and following the closing of the second tranche, it will hold a total of just over 35 per cent on a partially diluted basis. 

Before the second tranche can close, Mawson said it must obtain the approval of "disinterested shareholders" --- that is, shareholders other than the Sentient group and those involved in the first tranche --- at a meeting to be held on August 30. 

The new funds will be used to advance exploration at Mawson's Rompas project in Finland, as well as for general working capital needs. 

In June, Mawson said it discovered a new gold prospect, named Kaita, in the first month of field work at its Rompas project 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 in June that 10 local Finnish geologists were active in the field. 

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".