MacPhersons looks to raise $10.4m

MacPhersons chairman Ashok Parekh is kicking in $1m

Goldfields explorer MacPhersons Resources is looking to raise as much as $10.4 million to finance a bankable feasibility study and further drilling for its Nimbus silver-gold-zinc project.

The company announced this morning Orion Mine Finance - a global mining-focused investment firm - has committed to $6.5 million worth of shares in the placement if it is fully subscribed, with Orion's equity interest to be capped at 19.9 per cent.

MacPhersons chairman and Kalgoorlie business identity Ashok Parekh has committed to $1 million worth of shares in the placement, subject to shareholder approval.

The placement will be priced a 16 cents a share, a slight discount to its last trading price of 17.5 cents a share.

MacPhersons, which is currently in a trading halt, will continue in suspension until July 31 with the raising to be made to sophisticated and professional investors through the ASX BookBuild facility.

Orion and Mr Parekh will receive their allocations in priority to all other investors.

The money will be used to fund drilling in the hope of extending Nimbus' resource in addition to the finalisation of the permitting process and the BFS.

The company last estimated capital costs at between $58 million and $66 million for Nimbus, however it revealed earlier this month it expected costs to now come in "significantly lower" than previous assessments.

The company said the study, due for completion by the end of the September quarter, also flagged lower operating costs at Nimbus, with deep drilling at the project potentially also extending resource estimates.

The lead manager for the raising is Argonaut.

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