News: MacPhersons Resources substantial shareholder increases stake

MacPhersons Resources (ASX:MRP) substantial shareholder and chairman Ashok Aaron Parekh has increased their stake in the company following a placement, with the shares now allocated.

Earlier in the year MacPhersons raised $8.8 million to complete the Bankable Feasibility Study on its Nimbus silver-zinc-gold project.

In the placement Parekh acquired one million shares to move to 13.04% ownership from 11.51%.

The allocation of the shames follows the approval from the Annual General Meeting on 20th November 2014.

The shares were acquired at a price of 16 cents per share, a premium of 4.5cps (39%) higher than the market price of 11.5 cents per share last traded.


Reserves expected to increase

Recently drilling results at Nimbus in Western Australia intersected silver-zinc-gold mineralisation outside the planned stoping designs, paving the way for an increase in resources and reserves.

Since October, MacPhersons has focused drilling extensions of the silver-zinc-gold lenses at Nimbus. Highlights of the new drilling included 7 metres at 1472 g/t silver equivalent from 216 metres, which averaged 755 g/t silver and 21% zinc.

Other noteworthy intercepts were 10 metres at 852 g/t silver equivalent 206 metres, and 14 metres at 280 g/t silver equivalent from 96 metres.

Drilling at Nimbus has been completed for the December Quarter, and the Company is currently preparing resource and reserve updates for issue early in 2015.

The defined high-grade ore reserve at Nimbus is: 1.1 million tonnes at 297g/t Ag Eq* recoverable grade and remains on track for production and cashflow in CY15.

Managing Director, Morrie Goodz said “The continued investment by our Chairman shows his belief and commitment to the Nimbus project.

"The drilling has been very positive with extensions to mineralisation remaining open.

"The company is currently preparing updates to our resource and reserve inventories and the mine model.”