The Metal Hawk Ltd (ASX: MHK) share price is set to finish Friday's trading session on a high note. This follows the mineral exploration company's latest update on its capital raising efforts.
At the time of writing, Metal Hawk shares are up 15.31% to 56 cents apiece.
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Details of the placement
Investors are snapping up Metal Hawk shares after they came out of a trading halt today.
According to the company's release, Metal Hawk has received firm commitments from investors to raise $2.4 million by way of a placement.
Both new and existing institutional and sophisticated investors supported the offer. It's worth noting that established nickel miner Western Areas Ltd (ASX: WSA) also participated in the placement by maintaining its 6.6% interest.
Metal Hawk listed an issue price of 45 cents, which is an 8.2% discount to the last trading price on 5 October. Metal Hawk will create roughly 5.39 million shares using its 15% placement capacity under listing rule 7.1. The rule allows up to 15% of the company's shares to be issued without shareholders' approval.
Metal Hawk will use the net proceeds of the placement to accelerate drilling at its Berehaven Nickel Project.
Located about 20 kilometres southeast of Kalgoorlie in the West Australian goldfields, Metal Hawk recently discovered massive high-grade nickel sulphides at the Commodore prospect.
Metal Hawk managing director Will Belbin commented:
We've had a huge level of support for this raising which enables us to aggressively ramp up exploration drilling at Commodore. We look forward to following up the successful maiden RC campaign with deeper diamond drilling and downhole electromagnetics to get a better grasp on the project's true potential.
About the Metal Hawk share price
In addition to today's significant price rise, Metal Hawk shares have risen by almost 120% over the past year.
Metal Hawk commands a market capitalisation of about $22.65 million. It has approximately 40 million shares on its books.
