News: Mount Magnet South raising $1.14 million for exploration

Mount Magnet South (ASX:MUM) is raising up to $1.14 million for its exploration programs, general working capital and business development.

The company has received firm commitments from sophisticated investors and its directors for a share placement of 140 million shares priced at $0.0015 each to raise $210,000.

It will also carry out a pro rata non-renounceable entitlement offer to raise a further $927,000 before costs.

The share placement and entitlement offer includes one attaching option for every two shares. These are exercisable at $0.006 expiring 31 December 2018.

In the June 2014 quarter, the company started geological field work along the Wydgee Hills / Amazon Iron Ore trend in Western Australia with a plan to generate detailed topographic data and to further research the palaeochannel morphology in the area.

In addition, detailed structural mapping has commenced in the area, with information being sourced from the previous outcrop mapping together with remote sensing imaging, including aeromagnetics and Aster imagery.

This work is focussed to assist in the interpretation of buried Channel Iron Deposits as well as determining the potential strike length, width and tonnage of haematitic horizons as previously identified in theWydgee Hills area.

At its Jumbulyer Joint Venture, the company is waiting on results from a small drill program that partner Australian Mines (ASX:AUZ) had drilled to follow-up on a weak bedrock conductor identified by surface moving loop transient electromagnetic survey.

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