Meeka Metals secures $40M equity placement

• Meeka Metals has received firm commitments for a two-tranche placement to raise $40 million at $0.10.
• The new capital will boost the company's expected quarter-end cash balance to approximately $50 million.
• Proceeds will fund the Mt Holland deferred consideration, Turnberry underground mine development, and additional growth drilling.

Meeka Metals (ASX:MEK) has secured $40 million in firm commitments through a two-tranche share placement to fund its gold operations.

The new funding expands on the company's estimated cash position of approximately A$21 million prior to placement proceeds.

The transaction will issue new shares at $0.10 per share across two transactions, including $40,000 in director participation that requires shareholder approval at the annual general meeting on Nov. 24.

Petra Capital acted as the sole lead manager for the deal and will receive a 6% fee on total placement proceeds.

Following the announcement, the Meeka Metals share price was down at $0.099.

The business is shifting operations towards two higher-grade underground mines within the Murchison Gold Project.

Development of the second underground mine at Turnberry is scheduled to begin in October.