Magmatic to raise $5m

Magmatic Resources has secured commitments to raise $5 million from a share placement to explore its tenements in the East Lachlan gold-copper province in NSW.

The company said the funds raised would go towards exploration activities at the Lady Ilse gold-copper prospect, located about six kilometres south-west of Alkane’s Boda discovery.

Drilling programs will begin in late March.

Magmatic will issue around 16.6 million shares at 30 cents per share, with Hartleys acting as lead manager to the placement.

Settlement is anticipated for February 20.

Magmatic managing director Peter Duerden said following the placement, the company would be well-funded to progress exploration activities across its East Lachlan assets.

He said the Lady Ilse prospect was similar to Newcrest Mining's Cadia East gold-copper prospect.

The Lady Ilse prospect is part of Magmatic’s Wellington North project, which covers the northern extension of the Molong Volcanic Belt.

Shares in Magmatic closed up 28.6 per cent to trade at 45 cents per share.