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Magmatic Resources plans to raise $3 million for the expansion and acceleration of the high impact drilling program at the Myall project in New South Wales, and continued exploration of other high priority targets in Magmatic’s portfolio.

Magmatic managing director Adam McKinnon said the company was excited by the opportunity the capital raising provided towards defining a potential Tier 1 porphyry copper-gold deposit at Myall.

The placement comprises the issue of 30,206,000 new fully paid ordinary shares at an issue price of 10 cents per share.

In 2014, Magmatic completed the acquisition of an advanced gold-copper portfolio in the East Lachlan from Gold Fields Limited. Gold Fields had completed a major phase of target generation across four main projects (Wellington North, Parkes, Myall, Moorefield), identifying over 60 targets.

The East Lachlan has an endowment of more than 80m ounces of gold and 13m tonnes of copper. It is home to Newcrest Mining’s Cadia Valley District, which includes the Cadia East Mine, Australia’s largest gold mine and one of the world’s most profitable gold mines.

The Northparkes copper-gold mine and Cowal mine are also significant long-life gold-copper mining operations in the region.

The company also holds a strategic position in the Parkes Fault Zone, immediately south from Alkane’s Tomingley gold mine and recent Roswell and San Antonio gold discoveries.