Australia's Megado Gold soars on deal to buy rare earth element project

Megado Minerals

14/04/2022 03:47

** Shares of gold exploration company Megado Gold  MEG.AX 
rise as much as 127.27% to A$0.25
    ** Co to buy 100% of the issued share capital in Felix
Strategic Minerals Pty Ltd (FSM) (https://bit.ly/36cINQ1)
    ** FSM unit has contractual rights over the high-grade rare
earth element project North Fork in Idaho   
    ** Deal for 2 mln fully paid ordinary shares in Megado and 5
mln options with an exercise price of A$0.15
    ** Shares on track for its best day ever, if gains hold 
    ** Co to also raise A$2.4 million  ($1.79 million) through
placement of 30 mln shares at an issue price of A$0.08/share
    ** Placement is at a discount of 37.5% to Wednesday's close
    ** 7.3 mln shares change hands, compared with the 30-day
average volume of 76,589
    ** Stock has risen 32.53% this year as of last close 
($1 = 1.3410 Australian dollars)

 (Reporting by Anan Ashraf)
 ((Anan.Ashraf@thomsonreuters.com))