MTH raises up to ~$12.7M at ~40c per share
Our Investment Mithril Silver and Gold (ASX: MTH) just closed a ~A$12.7M capital raise at 40c per share.
MTH is one of the few stocks in our Portfolio that is dual listed on the ASX in Australia and on the TSX in Canada.
That means MTH has access to capital both here in Australia and over in Canada.
MTH secured the capital with Canadian Ventum Financial Group raising C$11.5M at C$0.36 per share.
At today’s exchange rate, it is a ~A$12.7M capital raise at 40c per share.
We were just on a site visit with MTH a few weeks ago - which was well attended by the Canadians.
Here is a picture of us going through historical workings with the Canadian analysts:
Read our full site visit write up here: Silver price breakout during our MTH Silver and Gold Site visit.
Placement stock escrowed?
One thing we noticed in today’s announcement was the lock forced escrows the Canadians put on placement stock:
(Source)
That means no one from the cap raise can sell the shares for at least four months, which gives MTH enough time to deliver material news and re-rate without the overhang of the cap raise shares…
We think the cap raise could be positive for MTH because:
- MTH is no longer cum-raise from a market perspective - meaning investors know the company has cash and wont need to raise cash so will be forced to buy on market if they want exposure to MTH going forward.
- MTH is drilling right now - MTH has two rigs on site, is drilling to upgrade its existing JORC resource and is about to drill two exciting regional targets chasing completely new discoveries…
MTH’s project has a 373Koz gold and 11Moz silver JORC resource.
AND MTH is currently drilling with two rigs to double its resource size.
MTH, just last week also confirmed that it would be drilling two new targets this quarter.
Across those two targets, we are hoping MTH can make new discoveries that multiply its existing JORC resource estimate.
We are especially looking forward to drilling from targets 3 and 5 which MTH says it will be drilling this quarter:
(The blue is where MTH’s existing resource sits, the orange circles are the regional targets MTH has/will be drilling)
See our Quick Take on targets 3 and 5 here: MTH to drill two new gold-silver targets this quarter
What’s next for MTH?
Over the coming months we will have two big catalysts to look forward to:
🔄 Additional assays (Target 1)
In the March quarterly report we noticed MTH mentioned that drilling was ongoing for targets at depth around Target 1.
In an announcement a few weeks back, MTH said these assays were pending.
We are looking forward to those results. Any hint of high grade mineralisation could add to MTH’s eventual resource upgrade in a big way.
Here is the section we want to see MTH hit high grade silver/gold:
🔲 Double the existing JORC resource
We want to see MTH get close to a doubling of its current JORC resource.
This should come once MTH has officially declared a cut-off for its drilling at target area 1.
🔲 Drilling at regional targets
Next we want to see MTH start drilling Targets 3 & 5.
MTH has previously said drilling would start this quarter…
