Meeka Metals Raises $60M at $0.15 per Share to Expand Mining Operations
Meeka Metals has raised $60 million through an institutional placement to fund expansion at its Murchison Gold Project, aiming to boost mining operations and processing capacity ahead of first gold production expected this month.
- Firm commitments for $60 million placement at $0.15 per share
- Funds to expand open pit mining with a third fleet and accelerate drilling
- Plans to confirm processing expansion beyond current 600ktpa capacity
- Strong support from existing and new institutional investors
- First gold pour at Murchison expected in June 2025
Placement Details and Strategic Intent
Meeka Metals Limited has successfully secured firm commitments for a $60 million institutional placement priced at $0.15 per share. This capital raise, supported by both existing shareholders and new domestic and international institutional investors, is designed to underpin the next phase of growth at the company’s flagship Murchison Gold Project in Western Australia.
The placement shares will be issued under Meeka’s existing placement capacity, ensuring a swift and efficient capital injection without the need for shareholder approval. This funding round reflects strong market confidence in Meeka’s strategy and the potential of its high-grade gold assets.
Growth Initiatives at Murchison
The proceeds from the placement will be directed towards several key growth initiatives. Central to these is the expansion and acceleration of open pit mining operations, including the mobilisation of a third open pit mining fleet featuring a 200-tonne digger and 140-tonne truck fleet. This move is expected to significantly increase mining throughput and operational flexibility.
In parallel, Meeka plans to accelerate both open pit and underground growth drilling programs. These drilling efforts aim to extend mineral resources and better define the ore body, which could unlock further value and potentially extend the mine life beyond current plans.
Additionally, the company intends to confirm a processing expansion pathway beyond the current 600,000 tonnes per annum capacity. This step is critical to scaling production and realising the full potential of the Murchison Gold Project’s mineral resource base.
Project Outlook and Market Confidence
Meeka’s Managing Director, Tim Davidson, emphasised the company’s focus on maximising the expanded open pit opportunity and bringing forward production with increased processing capacity. The first gold pour at Murchison is anticipated imminently in June 2025, marking a significant milestone for the project and the company.
The Murchison Gold Project hosts a substantial high-grade mineral resource of 1.2 million ounces at 3 grams per tonne gold, supported by granted mining leases. A Definitive Feasibility Study released in December 2024 outlined a robust 10-year production plan with an average annual output of 65,000 ounces over the first seven years, and an impressive pre-tax free cash flow forecast of $1 billion.
Market participants will be watching closely as Meeka advances its operational ramp-up and delivers on its growth ambitions, with the recent capital raise providing a strong financial foundation.
Bottom Line?
With $60 million secured, Meeka Metals is poised to accelerate production and unlock further value at Murchison, but execution risks remain as drilling and processing expansion plans unfold.
Questions in the middle?
- How quickly will the third open pit mining fleet be mobilised and operational?
- What are the timelines and expected outcomes for confirming processing expansion beyond 600ktpa?
- How will recent drilling results impact the mineral resource and mine life projections?
