AuMega Metals (ASX: AAM; TSXV: AUM; OTCQB: AUMMF) has upsized its private placement to $16.3 million thanks to strong demand from new, global investors and existing shareholders including B2Gold (TSX: BTO), which increased its ownership.
Proceeds from the financing will be used for exploration (flow-through shares) in Newfoundland and for working capital (hard dollar) purposes. The Bunker Hill property is located along the Cape Ray Shear zone, northeast of Port aux Basques.
The company says the placement consists of three parts:
- $10.2 million raised by selling charity flow-through shares at a price of $0.068 each. A total of 149.9 million shares falls into the charity designation, although 28.0 million shares are subject to shareholder approval.
- $2.1 million to be raised through the sale of traditional flow-through shares at a price of $0.06 each. The issue of about 33.3 million shares in this category is also subject to shareholder approval.
- $4.0 million of newly issued shares priced at $0.05 per share. A total of 79.3 million shares will be issued, or which 70 million will be subject to shareholder approval.
Proceeds of the placement will be used to drill AuMega’s 100%-owned Bunker Hill project, where AuMega completed its first pass prospecting in September 2024. Initial results from outcropping samples confirmed the presence of gold and high-grade copper mineralization. Sample 77, from the outcropping vein, contained 17.2% copper, 16.9 g/t silver, 0.41 g/t gold, 167 ppm bismuth, and 5.37 ppm tellurium. Sample 78. also from an outcropping vein, contained 12.4% copper, 19.1 g/t silver, 0.56 g/t gold, 1,119 ppm bismuth, and 9.98 ppm tellurium.
AuMega plans to continue exploring Bunker Hill as well as its nearby Malachite and Hermitage properties.
Visit www.AuMegaMetals.com.
