MGT Resources has raised A$6 million by issuing convertible notes to two private investors to finance exploration and an expansion of its mill capacity. MGT was granted a 21 year mining lease on the 1,170 hectare Summer Hills tenement in January this year and is currently focusing on the Dalcouth prospect within the lease. MGT’s strategy is to generate near-term cash flow from shallow, easily mineable targets, with Dalcouth identified as a first mining site due to its close proximity to its refurbished Mt Veteran processing plant and favourable metallurgical characteristics.
MGT’s Executive Chairman and Managing Director Jonathan Back said: “This agreement with two new investors is a significant step in our drive to complete our transition from an explorer to tin producer. The funds from this agreement provide financing to further define our JORC resource at our Summer Hills mining lease, which surrounds our Mt Veteran Tin Processing Plant, and to increase the current mill input capacity.”
