La Mancha Resource Capital, which manages the La Mancha Resource Fund, has announced that the fund plans to purchase a shareholding of approximately 19.9% in Miata Metals.
The investment will be made through a strategic private placement of around 31 million Miata Metals’ common shares, generating gross proceeds of roughly C$12.7m for the company.
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The private placement is being conducted at the same time as a C$7.5m brokered bought deal offering, bringing combined gross proceeds from the financing to approximately C$20.2m.
Upon completion of the transaction, the La Mancha Resource Fund is expected to become the largest shareholder in Miata Metals.
The fund will obtain customary investor rights as part of the transaction, such as participation rights and the option to appoint one nominee to Miata’s board.
It will also have the right to propose a second nominee, subject to certain ownership thresholds, board size and board approval.
The move increases the fund’s exposure to the Guiana Shield, which it considers a highly prospective yet under-explored gold region.
La Mancha Resource Capital stated that it remains confident in Miata Metals’ management team and in the potential of its 215km² Sela Creek project, acquired in 2024, to develop into a significant gold system.
According to the fund, Miata has rapidly invested in drilling and interpretation to advance its geological knowledge, detecting mineralisation across several zones at Sela Creek.
The investment is aimed at enabling Miata to accelerate exploration and assess the broader scale potential of the project.
La Mancha chief technical officer Jack Lunnon said: “We are pleased to confirm that the fund will be joining Miata as a cornerstone investor and a long-term strategic and supportive shareholder.
“This investment is an earlier-stage entry than much of the Fund’s portfolio, allowing us to build further on our presence in a region we consider highly prospective and in which we have already developed significant regional experience and expertise.
“We believe Miata has made great progress at Sela Creek in a short period, and we see an attractive opportunity to accelerate that work over the coming years, with conviction that the team will be able to delineate a project of material scale. We look forward to working with the company through this exciting period.”
