PERTH (miningweekly.com) – Minerals explorer Consolidated Zinc received firm commitments for the placement of 162.5-million shares, raising A$6.5-million to accelerate the drilling programme at its Plomosas zinc project, in Mexico.
The shares have been priced at 4c each, with a free one-for-two unlisted option, exercisable at 6c each.
The placement would be made to qualified institutional and sophisticated investors both in Australia and overseas, and would be completed in two tranches.
“This is a terrific result for the company,” said Consolidated Zinc MD Will Dix.
“The recent results we have released to the market from our drilling below Level 7 have gone some way to de-risking the project, and the positive response to the capital raising reflects the enormous value in the Plomosas zinc project.”
Dix added that an aggressive drilling programme, a maiden resource estimate, and the onset of regional exploration would all feed into significant news flow over the remainder of 2016.
Historical mining at Plomosas between 1945 and 1974 extracted over two-million tonnes of ore grading 22% zinc and lead and over 80 g/t silver. Only small-scale mining was currently conducted at the site, and the main mineralised zones remained open at depth and along strike.