PERTH (miningweekly.com) – ASX-listed AuTECO Minerals has received firm commitments for a A$55-million two-tranche share placement, priced at 2.2c each.
The share placement was announced last month to fund the A$65-million acquisition of the Green Bay copper/gold project in Newfoundland, Canada. The acquisition comprises a A$35-million up-front consideration and A$15-million in shares, followed by an additional A$7.5-million in cash and A$7.5-million in shares, within 18 months.
The first tranche of the capital raise will consist of 346.95-million shares issued to sophisticated and professional investors, raising A$8.7-million under the company’s existing capacity.
The second tranche of more than 1.85-billion shares to raise A$46.3-million, will be subject to shareholder approval.
AuTECO said on Monday that the successful share placement meant that the company was also fully funded for an aggressive exploration programme aimed at growing the Green Bay resource. The accelerated resource growth programme will include 700 m of underground exploration development and 40 000 m of drilling. Drilling will start immediately.
Meanwhile, a share purchase plan, aimed at raising a further A$3-million, will open on September 6, and will close on October 19.