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$2.5M Capital Raise to Advance Gold Exploration at Leinster South
Metal Hawk Limited (ASX: MHK, “Metal Hawk” or the “Company”) is pleased to announce that it has received firm commitments from sophisticated investors to raise A$2.5 million (before costs) by way of placement (the “Placement”). The majority of the placement was completed by the Company’s existing major shareholders.
Highlights:
- Firm commitments received to raise $2.5 million (before costs) at $0.20 per share via a placement to existing shareholders.
- This represents a 2.5% discount to the last closing price of $0.205.
- Metal Hawk is now well-funded to advance gold exploration at Leinster South as it heads towards an extensive maiden drilling program.
Directors have agreed to subscribe for $60,000 of Placement shares, subject to shareholder approval, which will be sought at a General Meeting (GM).
Proceeds from the Placement will be used to fund gold exploration activities including the maiden drilling program at the Leinster South Project in Western Australia.
Placement Details
The Placement will comprise a total of 12,500,000 new fully paid ordinary shares (“New Shares”) at an issue price of $0.20 per New Share. 12,200,000 New Shares are to be issued pursuant to the Company’s placement capacity under ASX Listing Rules 7.1. A further 300,000 New Shares will be subscribed for by Metal Hawk Directors, William Belbin, David Pennock and Michael Edwards (or with their related entities), subject to shareholder approval.
Completion of the Placement is expected to occur on or around 18 November 2024.
The Placement issue price of A$0.20 per New Share represents; a 2.5% discount to the closing price of Metal Hawk shares of A$0.205 on 11 November 2024 (being the last trading day prior to the Placement); and a 6% premium to the 5-day VWAP prior to the Placement.
Metal Hawk Managing Director Will Belbin commented: “We are very pleased with the strong level of support from shareholders. This is a very exciting period for the Company as we work towards the maiden drilling program at Leinster South.”
Click here for the full ASX Release
This article includes content from Metal Hawk Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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Metal Hawk Limited
Investor Insight
Metal Hawk has a solid strategy to increase shareholder value through early-stage exploration success, leveraging a strong gold market and driven by a highly experienced team with a track record of successful discoveries.
Overview
Metal Hawk Limited (ASX:MHK) is an Australian exploration company with a primary focus on gold and nickel discoveries. The company is driven by a technically proficient team with a proven track record of identifying high-potential mineral exploration projects and executing early-stage discoveries.
Founded with a strong commitment to disciplined exploration, Metal Hawk’s portfolio is primarily concentrated in the prolific Eastern Goldfields of Western Australia. The company’s exploration strategy combines traditional geological methods with innovative technologies to unlock the full potential of its tenements.
The main focus of Metal Hawk’s current exploration activities is its Leinster South project, which has shown significant promise following the discovery of high-grade gold at the Siberian Tiger prospect. Metal Hawk is advancing towards securing the necessary permits for further exploration and a maiden drilling program at Leinster South. Metal Hawk is finalising heritage negotiations and intends to undertake a heritage clearance survey as soon as possible, which will allow for the commencement of a maiden reverse circulation (RC) drilling program at Siberian Tiger. This drilling campaign will test the depth extent and continuity of the high-grade gold mineralization identified at surface.
The company also maintains a diversified exploration portfolio with other projects such as Berehaven, Yarmany and Kanowna East, all of which hold strong potential for gold and nickel mineralisation.
Company Highlights
- A gold-focused exploration company backed by a highly experienced technical team with a track record of identifying high-potential projects and making early-stage discoveries.
- The company’s flagship project is the Leinster South project, which hosts the high-grade Siberian Tiger gold prospect.
- Recent rock chip sampling at Siberian Tiger returned assays as high as 20.2 g/t gold.
- Metal Hawk has completed a UAV magnetic survey at Leinster South to assist with drill targeting.
- The company is progressing through heritage negotiations and awaiting approval for a maiden RC drilling campaign at Siberian Tiger.
Key Projects
Leinster South – Flagship Project
Leinster South, Metal Hawk’s flagship project, is located 30 kilometers south of Leinster in Western Australia’s Eastern Goldfields region. Covering approximately 127 square kilometers of granted tenure, this project is highly prospective for gold and nickel mineralization. Its proximity to the Agnew-Lawlers mining center, which has produced over 5 million ounces of gold at an average grade of 5 grams per ton (g/t), further enhances its significance. The project sits within the Agnew-Wiluna greenstone belt and along the eastern limb of the Lawlers Anticline, a key structural feature associated with major gold discoveries in the region.
The Siberian Tiger prospect within Leinster South is the focal point of Metal Hawk’s exploration efforts. Recent rock chip sampling from quartz veins has returned high-grade gold results, with assays reaching up to 20.2 g/t. This high-grade discovery has accelerated the company’s exploration activities, with further sampling and mapping identifying additional gold anomalies along strike from the Siberian Tiger prospect.
The prospect has also been the subject of geophysical surveys by Metal Hawk, including a UAV magnetic survey, which has provided detailed data on the geology and helped identify several drill targets. These findings confirm the presence of prospective stratigraphy along the eastern limb of the Lawlers Anticline, setting the stage for a maiden RC drilling program. Heritage negotiations with traditional owners are progressing, and once complete, the company will begin drilling to test the depth and continuity of the mineralization.
Metal Hawk’s exploration strategy at Leinster South combines geophysical surveys, geochemical sampling, and geological mapping to systematically assess the project’s potential. While the focus is on drill testing surface gold mineralization at Siberian Tiger, the company is also exploring other areas of the tenement for additional targets. The broader project area contains a variety of mafic and ultramafic rocks, which are known to host both gold and nickel mineralization.
Berehaven
The Berehaven project is located in a well-established mining region, known for its gold and nickel potential. Metal Hawk’s exploration efforts here have focused on identifying structurally controlled gold mineralization. The project area is characterized by mafic and ultramafic rock sequences, which are highly prospective for hosting both gold and nickel deposits. While still in the early stages of exploration, Berehaven represents a valuable asset in Metal Hawk’s portfolio.
Yarmany
Yarmany is another key project in Metal Hawk’s portfolio, located in the Western Australian Goldfields. This project is highly prospective for gold, with several historic workings and gold anomalies identified through surface sampling. The project’s proximity to known gold deposits adds to its appeal, and Metal Hawk is planning further exploration to delineate drill targets.
Kanowna East
The Kanowna East project is located near the world-class Kanowna Belle gold mine, which has produced millions of ounces of gold over its operational life. Metal Hawk’s tenements in this region are prospective for both gold and base metals, and the company is planning additional exploration activities to test the area’s potential.
Management Team
Mike Edwards - Non-executive Chairman
Mike Edwards is a geologist and economist with over 25 years’ experience in senior management roles within both the public and private sectors. Edwards worked for Barclays Australia in the commercial and corporate finance department, before returning to university to complete a Bachelor of Science in geology. Edwards then spent eight years as an exploration and mine geologist, principally working in Australia with a focus on Archaean gold and base metals. Over the past 10 years, Edwards has held numerous executive and non-executive director roles, predominantly with ASX-listed companies. Most recently, he was the non-executive chairman of Firefly Resources (ASX:FFR), which successfully merged with Gascoyne Resources (ASX:GCY). Edwards holds a Bachelor of Business (economics and finance) from Curtin University of Technology, and a Bachelor of Science (geology) from the University of Western Australia.
Will Belbin - Managing Director
Will Belbin has over 20 years’ experience working in gold and base metals exploration, with extensive experience in project generation and evaluation. He was an integral part of the Fisher East nickel sulphide discoveries as exploration manager for Rox Resources. Previously, Belbin worked with Newexco as a senior geologist at Western Areas’ Forrestania nickel project. He holds a geology degree from the University of Western Australia and a Master of Mineral Economics from Curtin University's Graduate School of Business.
David Pennock - Executive Director
David Pennock is a corporate geologist from the WA School of Mines, with over 15 years of experience in the resources sector and has strong business development skills.
Scott Glasson - CFO
Scott Glasson is an experienced CFO and qualified chartered accountant with a strong knowledge of financial markets, corporate governance and accounting practices.
MHK 2024 Annual General Meeting Presentation
High Grade Gold Assays Extend Thylacine
Thom Calandra: Gold vs. Bitcoin, Platinum Outlook, 4 Biggest Stock Positions
Thom Calandra of the Calandra Report joined the Investing News Network to discuss his thoughts on gold vs. Bitcoin as the popular cryptocurrency faces both a high price and high volatility.
He acknowledged that many gold investors still aren't interested in Bitcoin, but said he sees pros and cons.
"I'm not going to say anything bad about Bitcoin because it has the blockchain behind it, and most Fortune 1000 companies have blockchain technology for products and services — it's an asset, it's a valid asset," Calandra said.
He also explained why he's bullish on platinum and why he's interested in the shipping sector.
"I would say that the only other sector I'm interested in personally is shipping," Calandra commented.
"When it comes to shipping, it's probably as sensitive to geopolitics as gold. I invest in the small shippers, the ones that return 80 or 90 percent of their profits to investors in the form of dividends — DHT Holdings (NYSE:DHT) is one."
In closing, Calandra shared his four largest positions heading into 2025: Ivanhoe Mines (TSX:IVN,OTCQX:IVPAF), Alamos Gold (TSX:AGI,NYSE:AGI), Xtra Gold Resources (TSX:XTG) and EMX Royalty (TSXV:EMX,NYSEAMERICAN:EMX).
Watch the interview above for more of his thoughts on those topics.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Breathing New Life into Australia’s Historic Hill End Gold District
Many resource-rich regions are dotted with historical mines, some of which have since become tourist sites. But not all old mines should remain dormant. In fact, some former producers can serve again as successful working mines.
There are numerous benefits to revitalising a historic mine. One is that they have proven resources, with new technologies aiding in expanding those resources even more. Others are that historical data is readily available, and nearby infrastructure makes resuming production straightforward.
To find mines with a rich history and more potential, look no further than New South Wales. The town of Hill End is one such place. It made mining history centuries ago and it’s now emerging as a location with more gold to offer.
Hill End’s story
Gold was discovered in this area in Central-Western New South Wales in 1851 when there was almost nothing there, just a hotel and two stores. Hill End turned into a significant alluvial gold-mining precinct at a location called Tambaroora, where some tens of thousands of Europeans and Chinese worked the gravels.
It has been conservatively estimated that the alluvials yielded some 800,000 ounces of fine gold.
In October 1872, the Star of Hope Gold Mining Company discovered the Holtermann’s nugget, the largest specimen of reef gold ever found. It weighed 286 kilograms and measured 150 centimetres by 66 centimetres, with an average thickness of 10 centimetres. (It’s not actually a nugget, but a quartz specimen infused with veins of gold.
That discovery, plus other active mining operations — including the Hawkins Hill mine, which yielded 435,000 ounces at 309 grams per tonne — caused the population of Hill End to soar, becoming one of the largest inland towns in New South Wales. The entire goldfield region was estimated to be home to 30,000 people at one point.
The boom town went bust by 1874, with much of it closing down and the population declining into the hundreds over the next few decades. In the 1920s, mining activity returned briefly to the region.
During its heyday, Hill End yielded 50 tonnes of gold. Today, Hill End remains an illustrious region known for its untapped potential.
A return to Hill End
One company believes Hill End’s gold story is far from over.
Vertex Minerals (ASX:VTX) is resurrecting operations at the Reward gold mine, part of its Hill End project. Production is scheduled to commence in 2025, with a resource estimated at 485,000 ounces of gold. The company has tenure over 155 square kilometres of land, seven granted exploration licences, one gold lease and 10 mining leases.
Vertex’s Hill End project comprises three assets — Reward, Red Hill and Hargraves — with a combined mineral resource of 4.21 million tonnes of gold. The Reward mine alone has an indicated resource of 141,000 tonnes at 15.5 grams per tonne gold for 71,000 ounces of contained gold, and 278,000 tonnes at 17.3 grams per tonne gold for 155,000 ounces of contained gold in the inferred category.
According to Roger Jackson, executive chairperson of Vertex, the benefits of working on a well-developed historical mining site are many. Reward has significant underground development with some $25 million already spent on an air intake shaft, a 1 kilometre adit and mine development access to high-grade gold stopes. Reward also has a gravity gold-processing plant that can recover uniquely 92 percent of the gold by simple gravity means. Vertex is in the process of upgrading this plant and adding an ore sorter into the flow sheet with expected exception results.
“All the environmental footprint has already been stamped on the location. We understand the geology, we understand the metallurgy,” said Jackson.
A modern approach
“The Reward mine has the potential to grow to a significant size due to the near-mine potential of further high-grade ore to be drilled and resourced. The Reward resource is only drilled to about 100 metres below the amalgamated adit, so (with) further drilling below this is likely to be fruitful,” added Jackson.
Developing and restarting the Reward mine is just part of Vertex’s plans for Hill End, which include reinstalling a refurbished 110,000 tonne per year Gekko gravity gold plant and commencing gold production from existing stockpiles. The company also plans to increase Hill End’s high-grade resource through further exploration and drilling.
The company has just purchased its own drill rig so it can maintain a focused, constant, long-term drilling effort to build on the high-grade gold inventory.
Current approaches to mining and extraction, meanwhile, can one-up historical processes to be more ecologically aware. The use of gravity separation for processing ore at the Reward mine will lead to high-grade gold with a low-cost process that will be far less environmentally concerning than methods used at most facilities. Gravity technology uses the natural force of gravity to separate valuable minerals from waste material, and minimises the use of harsh chemicals in the process. This method is particularly effective for gold extraction in unique gold ore like the Reward.
Investor takeaway
Revitalising historic mining facilities comes with many benefits for companies and their investors. These former producers are more straightforward to develop due to existing resources and infrastructure, and can offer a more cost-effective mine restart and significant potential for near mine resource expansion through exploration.
This INNSpired article is sponsored by Vertex Minerals (ASX:VTX). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Vertex Mineralsin order to help investors learn more about the company. Vertex Minerals is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Vertex Minerals and seek advice from a qualified investment advisor.
Don Hansen: Gold, Silver Stocks "Extraordinarily Undervalued," Data Shows What's Next
Private investor Don Hansen has honed his resource sector investment approach for more than 20 years, and he shared his latest research in a conversation with the Investing News Network.
Focusing on the state of the US monetary system and how it relates to gold, he explained that the gold price is poised to rise, which presents strong opportunities in both gold and silver stocks.
"We are at a critical point where this is a phenomenal investment opportunity," Hansen said.
"The (stocks) that I like the best are the ones that are not only profitably producing, they're in the bottom quartile (for costs), they're in good locations, they have good management — and they have exploration projects within their portfolio which if they develop and get it into a mine would double their production in three years or less."
Hansen's current favorite companies are K92 Mining (TSX:KNT,OTCQX:KNTNF), G Mining Ventures (TSX:GMIN,OTCQX:GMINF), Aris Mining (TSX:ARIS,NYSEAMERICAN:ARMN) and Aya Gold & Silver (TSX:AYA,OTCQX:AYASF).
Watch the interview above for more on the topics discussed above, as well as the outlook for the US dollar, thoughts on the BRICS nations and the impact of the US presidential election.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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