Mustang Resources to receive nearly $20 million in funding for ruby project

ASX-listed Mustang Resources, a rising gem explorer operating out of Mozambique, has secured $19.95 million in convertible note funding from US investment company, Arena Investors.

The funding will go towards development of the emerging operator’s Montepuez ruby project and, to a lesser extent, its Caula graphite projects, both of which are located in the African country.

Mustang, which has market cap of $24 million, will receive $1.9 million upon signing  of the deal, followed by $3.8 million up to four months after the first tranche date, and then five payments of $2.85 million for each remaining tranche, with three to four months between each payment, subject to conditions.

The company also announced an opportunity to raise $4 million through a one-for-five, non-renounceable entitlement issue for current shareholders

“We are very pleased to receive further support in the form of this facility from Arena and look forward to delivering results from the investment of the fresh capital for the benefit of all shareholders,” said Ian Draymond, executive chairman of Mustang.

The company’s 19,500 hectare Montepuez project consists of four licences adjacent to Gemfields’ own 33,600 hectare Montepuez project, which is thought to be one of the largest ruby deposits in the world.

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