Midas Placement Hinges on Shareholder Nod Amid Otavi Acquisition
Midas Minerals has locked in $6.5 million through a two-tranche placement to fund its strategic acquisition and exploration of the Otavi Copper Project in Namibia, alongside advancing its broader project portfolio.
- Placement raised $6.5 million at $0.15 per share
- Strong support from existing shareholders and directors
- Funds earmarked for Otavi Project acquisition and exploration
- Placement structured in two tranches, second tranche subject to shareholder approval
- Exploration to extend across Namibia and Western Australia projects
Strategic Capital Raise to Fund Growth
Midas Minerals Limited (ASX: MM1) has successfully secured firm commitments for a $6.5 million placement, priced at $0.15 per share, aimed at accelerating its acquisition and exploration activities focused on the Otavi Copper Project in Namibia. This capital injection reflects strong backing from the company’s existing shareholder base, including participation from its directors, signaling confidence in Midas’ growth strategy.
Two-Tranche Placement Structure
The placement is structured in two parts: the first tranche will raise approximately $4.65 million under the company’s existing placement capacity, with shares expected to settle by late May 2025. The second tranche, which could raise up to $1.85 million, awaits shareholder approval anticipated at a general meeting in July. This staged approach balances swift capital access with governance oversight.
Focused Deployment on Otavi and Beyond
Proceeds from the placement will primarily support the acquisition and exploration of the high-grade Otavi Copper Project, a 1,776 square kilometre asset boasting historic drill results with significant copper and silver grades. Midas is preparing to commence drilling soon after acquisition completion, aiming to unlock the project's considerable upside potential. Additionally, funds will bolster exploration at the South Otavi Project and other assets including the Newington Lithium-Gold and Challa Gold-Copper-PGE projects in Western Australia.
Market Context and Share Pricing
The placement price of $0.15 per share represents a modest discount to recent trading prices, reflecting a balanced approach to raising capital without excessive dilution. The company’s Managing Director, Mark Calderwood, emphasized the readiness to initiate drilling programs promptly, underscoring Midas’ commitment to advancing its project pipeline efficiently.
Looking Ahead
With the trading halt lifted and settlement of the first tranche imminent, Midas Minerals is positioned to move quickly on its strategic objectives. The upcoming shareholder meeting will be a key event to watch, as approval of the second tranche will complete the funding package necessary to fully execute the company’s exploration ambitions.
Bottom Line?
Midas Minerals’ $6.5 million placement sets the stage for a pivotal phase of exploration and growth, with shareholder approval and drilling results next on the horizon.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly in July?
- How soon after acquisition completion will drilling commence at Otavi?
- What initial exploration results can investors expect from Otavi and other projects?
