TORONTO (miningweekly.com) – TSX-V-quoted Atacama Minerals is raising C$50-million in private placement with a syndicate of underwriters Cormark Securities is leading, the South America-focused junior said on Thursday.

It will use the money to buy and advance mining opportunities in South America and West Africa, the Vancouver-based company said.

The private placement involves selling around 41.6-million receipts for C$1.20 each, with each receipt automatically becoming a security once Atacama’s acquisition of Sirocco Gold becomes effective, expected to take place in January.

Atacama in October announced it would buy Sirocco, which owns exploration assets in West Africa, for 20-million shares, while at the same time saying that Richard Clark would take over as CEO, while Alessandro Bitelli became CFO and Kevin Ross COO – all formerly of Redback Mining, which Kinross Gold bought last year.

The company, which is chaired by mining entrepreneur Lucas Lundin, has seen its share price nearly double since announcing the management change.

Atacama operates the Aguas Blancas iodine mine in Chile.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.