Mogotes Metals Provides Update on Exercise of Rights
Mogotes exercises rights with Rio Tinto and CD Capital to fuel Filo Sur exploration.
Mogotes Metals Inc. announced an update regarding the exercise of subscription rights by CD Capital Fund IV L.P. and other existing shareholders, which has led to an increase in the private placement size from 31,000,000 shares to up to 38,558,817 common shares. The offering price remains fixed at $0.49 per share, with gross proceeds expected to rise to up to $18,893,820, pending approval from the TSX Venture Exchange and other regulatory bodies.
CD Capital is exercising its right to increase its ownership stake to 19.9% on a partially diluted basis. The issued shares carry a hold period of four months plus one day.
Mogotes Metals Inc. (MOG) issued a follow-up update on July 21 regarding its capital raise, which was initially announced on July 14 in connection with CD Capital’s rights exercise. The company clarified that the increase in share count from 31 million to 38.5 million reflects standard pre-emptive right exercises by other shareholders, a routine occurrence for this type of offering.
The financing was priced at $0.49, a slight discount to the recent trading range of $0.50 to $0.57, but consistent with the company's recent capital raising trajectory. This capital raise secures additional working capital to fund the ongoing exploration program, extending the cash runway and reducing near-term refinancing risk. The transaction does not alter the fundamental thesis established by the July 13 Rio Tinto alliance or the ongoing Filo Sur drilling program.
Mogotes Metals Inc. (MOG) is an early-stage explorer focused on copper-gold-silver porphyry and epithermal systems. Its flagship project, Filo Sur, is located in the Vicuña District straddling the Argentina-Chile border and adjoins the BHP/Lundin Filo del Sol deposit, leveraging regional geological familiarity. Recent drilling at Albor and Cruz del Sur has revealed high-grade, shallow copper-gold-silver-molybdenum mineralization, expanding the known footprint. The company is also advancing the Beskauga project in Kazakhstan, which holds an NI 43-101 resource of 111.2 Mt Indicated and 92.6 Mt Inferred, as well as the Copper Cliff project in Montana, USA.