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Tuesday, 10 September 2013
Mawson Resources closes $4.2 mln financing
Mawson Resources (TSE:MAW) has closed the second and last tranche of its non-brokered private placement financing, raising a total of $4.2 million to advance its projects in Finland.
Under the last tranche, Sentient Global Resources Fund IV, L.P., part of the Sentient Group, was issued 3.63 million units, for total proceeds of $1.635 million. Mawson closed the first $2.57 million tranche, which was oversubscribed, in early August.
Each unit is made up of one common share of Mawson and one half of a share purchase warrant. Every warrant allows the holder to acquire an additional share of Mawson at a price of 65 cents apiece for a period of two years.
The Sentient Group now holds about 35 per cent of Mawson on a partially diluted basis, according to the company statement released late Monday.
Aside from advancing exploration work on its projects, the new funds will also be used 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 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 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".