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Why Meteoric Resources (ASX:MEI) share price is soaring 6% higher

Bucking the wider falling market, Meteoric Resources’ share price has surged up 6.35% today. We take a look at why…
The post Why Meteoric Resources (ASX:MEI) share price is soaring 6% higher appeared first on The Motley Fool Australia. –

Rocket shooting out of investors outstretched hands to signify fast growth of ASX tech share

The Meteoric Resources NL (ASX: MEI) share price lived up to its name today, surging up 6.35% to close at 6.7 cents.

This reflects a 120% boost year-to-date and follows the company’s positive announcement on its capital raising. In comparison, the wider All Ordinaries Index (ASX: XAO) closed 0.49% down at 6866 points.

What’s lifting the Meteoric Resources share price today?

In this morning’s ASX release, Meteoric Resources announced a successful capital raising to accelerate its drilling programs.

The company reported it has firm commitments to raise up to $4 million before costs at an issue price of 5.7 cents per share to sophisticated and professional investors. That includes $2 million from an investment syndicate spearheaded by ‘legendary resources’ investor Keith Biggs.

Meteoric plans to use the funds to accelerate its promising drilling exploration programs in Brazil and Western Australia. That includes extending its drilling further southwest at Butchers Creek and the drilling in early 2021 of a new giant IP anomaly located beneath Juruena.

Commenting to the capital raising, Meteoric Resources managing director Andrew Tunks said:

We are delighted with the support shown to us by our existing shareholders which will enable us to continue our consistent in the ground exploration spend. Despite the global troubles of 2020, the MEI exploration teams have delivered some remarkable drilling results across both our projects…

At Palm Springs, in what was our first drilling program, we have extended known mineralisation from the historic Butchers Creek Open Pit over 360m south and delivered some amazing results…To top off a remarkable year, we completed a deep IP/MT survey across the Juruena Project and delineated a giant IP chargeability anomaly which we will drill test in early 2021.

Company snapshot

Meteoric Resources is a mineral exploration company focused on iron, gold, copper, and nickel deposits. It has projects in Brazil, Canada, Western Australia, and the Northern Territory. These include Juruena Gold Project, Brazil; Palm Springs Gold Project, Western Australia; Novo Astro Project; Warrego North Project; and Webb Diamond JV.

From mid-January through to 6 May, the Meteoric share price was anything but meteoric, tumbling 75%. Since those lows, shares have surged an eye-popping 560%. That’s enough to put Meteoric Resources share price up 120% year-to-date.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Meteoric Resources (ASX:MEI) share price is soaring 6% higher appeared first on The Motley Fool Australia.

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