PERTH (miningweekly.com) – ASX-listed Energia Minerals has signed a mandate for an A$8-million funding package to advance its Gorno zinc project, in Italy.
The company reported on Monday that it had signed a mandate with Euroz Securities to undertake the funding package, which would consist of a A$6-million share placement to sophisticated investors, priced at 2.5c a share, and an underwritten A$2-million nonrenounceable entitlement issue, which would be undertaken at the same price.
The mandate would be subject to a due diligence study and shareholder approval.
Energia reported that the funding package would enable the company to fast-track further development at Gorno over the next few years.
The project, which had historically produced about six-million tonnes of ore and had a fully developed underground mine infrastructure, had an exploration target of between six-million and ten-million tonnes, grading between 7% and 10% zinc and lead.
One of Energia’s first objectives was to convert the exploration target to a Joint Ore Reserves Committee-compliant resource.
“The board has been seeking to raise funds to provide the capacity to fast-track the evaluation and development of the Gorno project. This funding package,which carries the full support of the board, will enable the value of this exciting prospect to be materialised,” said Energia chairperson Tony Iannello.
Meanwhile, Euroz and mining personality Alexander Burns have each agreed to provide a nonrefundable loan of A$125 000 to Energia, to meet its short-term working capital requirements, before the funding package was approved.
Burns, who was MD of Sphere Minerals until its takeover by Xstrata in 2010, would be appointed to the Energia board as executive chairperson, while Marcello Cardaci would be appointed as a nonexecutive director, following the completion of the share placement.
Iannello and nonexecutive director Ian Walker would both step down from the board at that time.