Midas Minerals Secures $11.5M to Accelerate Otavi Copper Ambitions
Midas Minerals has raised $11.5 million through a strongly supported placement to fund its acquisition and exploration efforts at the Otavi Copper Project in Namibia.
- Placement of 31 million shares at $0.37 each raising $11.5 million
- Funds to cover Otavi Copper Project acquisition and accelerated drilling
- 3,000m drill program underway at South Otavi with potential expansion
- Strong institutional investor support including new and existing shareholders
- Second tranche subject to shareholder approval for shares issued to a director
Capital Raise to Fuel Growth
Midas Minerals Limited (ASX, MM1) has successfully secured firm commitments for an $11.5 million placement, pricing shares at $0.37 each. This capital injection is earmarked primarily to complete the acquisition of the Otavi Copper Project in Namibia and to accelerate exploration activities across both the Otavi and South Otavi projects.
The placement attracted robust support from a mix of new and existing institutional investors, signaling confidence in Midas’ strategic direction and the potential of its Namibian assets. The issue price reflects a modest discount to recent trading prices, balancing shareholder value with the need to raise funds efficiently.
Advancing Exploration with Drilling Underway
Already underway is a 3,000-metre drilling program at South Otavi, targeting approximately 100 holes. This first-pass drilling aims to unlock further high-grade copper and precious metals potential, with the possibility of scaling up depending on early results. The Otavi Copper Project itself boasts historic intercepts of notable grades, including 17.2 metres at 7.24% copper and 144.4 grams per tonne silver, underscoring its exploration upside.
Midas’ Managing Director, Mark Calderwood, emphasized the importance of the placement in accelerating the company’s exploration timeline, anticipating the acquisition’s completion next quarter. This follows a previous $6.5 million raise in May, which supported initial acquisition costs and exploration groundwork.
Structured Placement and Governance
The placement is structured in two tranches. The first tranche, raising nearly $11.48 million, will proceed without shareholder approval and is expected to settle by late September. The second tranche involves the issue of shares to Non-Executive Director Michael Bohm, subject to shareholder approval at a general meeting planned for early December. This governance approach balances expediency with transparency and shareholder involvement.
Lead managers Canaccord Genuity and Euroz Hartleys have guided the placement, reflecting institutional market confidence. The company has also lifted its trading halt, allowing shares to resume trading immediately following the announcement.
Broader Portfolio and Future Prospects
Beyond Namibia, Midas maintains a diversified portfolio including gold and lithium projects in Western Australia and Canada. The company’s track record of advancing junior explorers into mid-tier players adds a layer of credibility to its current ambitions. However, as with all exploration ventures, the ultimate success hinges on drilling outcomes and market conditions.
Bottom Line?
Midas’ $11.5 million raise sets the stage for a pivotal phase in its Namibian copper quest, with drilling results poised to shape its next growth chapter.
Questions in the middle?
- Will the upcoming drilling at South Otavi confirm the high-grade potential suggested by historic data?
- How will shareholder approval for the second tranche impact investor sentiment and capital structure?
- What timeline and milestones should investors watch for regarding the completion of the Otavi acquisition?
