Graphex Mining surges on news of $2.3 million entitlement offer to fund Mali gold earn-in exploration

Graphex Mining Ltd (ASX:GPX) surged 123% after launching a fully underwritten pro rata $2.3 million entitlement offer to fund exploration which will enable the company to earn-in to highly prospective gold projects in Mali. In the 1 for 1 non-renounceable rights issue, the company will issue 115,011,555 fully paid ordinary shares at a price of 2 cents per share. Shares in the company, which is changing its name to Marvel Gold Limited (ASX:MVL) in line with its new gold direction, are up 123% to 8.7 cents. The new shares will be offered to eligible shareholders on the basis of one new share for every one fully paid ordinary share held at 5.00pm (AWST) on July 24, 2020. The right to subscribe for the new shares in accordance with an entitlement under the offer will be non-renounceable. Funding exploration Proceeds from the entitlement offer will be used to: Provide funding for exploration work to enable the company to earn-in to the Mali gold projects; Conduct a process to sell-down or refinance the Chilalo project; Carry out work to identify opportunities to expand the company’s landholding in Mali; and Fund corporate overheads and working capital. Offer details The entitlement offer will be made to shareholders with a registered address in Australia, New Zealand, United Kingdom, Hong Kong, Mauritius, Singapore and Germany as at 5:00pm AWST on the record date. In connection with the entitlement offer, a prospectus and Appendix 3B have been lodged with ASX, which together with the release on July 20, 2020, of the results of the general meeting, lifts the voluntary suspension in trading of the company’s shares. The offer price represents a discount of approximately 49% to the share price of 3.9 cents at close of trading on Monday, March 23, 2020, the last day on which the company’s shares traded on ASX. This entitlement offer is being underwritten by Bridge Street Capital Partners and Capital DI Limited. The proposed offer timetable. Change of name The change to the company’s name from Graphex Mining to Marvel Gold, as approved by shareholders at a general meeting held on July 20, 2020, took effect with the Australian and Securities Investment Commission on the same day. However, the change of name with ASX and new ASX ticker code (MVL) will only take effect following completion of the entitlement offer.