JOHANNESBURG (miningweekly.com) – Australia-listed MOD Resources has raised $18-million to “turbo charge” its growth plans in the Kalahari copper belt of Botswana, where a drilling programme is set to be expanded.
The exploration company on Tuesday announced that it had raised $12-million in an oversubscribed share placement by issuing 255 319 148 shares at $0.047 each to a number of institutional investors. A further $6.3-million was raised in a rights issue.
MOD is planning a “major expansion” of exploration activities and would use the majority of the funds raised from the placement and rights issue for exploration activities along the T3 Dome, T20 Dome and across the wider 12 600 km2 of regional holdings.
The expansion would complement the current drilling programme focusing on the T3 Pit extension, T3 underground and T1 underground projects, as well as the T-Rex exploration target.
MOD currently has eight drill rigs operating and this would increase to test more targets, the exploration firm said, adding that, by early June, drilling would start on high-priority targets in the T3 Dome area and subsequently in the T20 Dome, 100 km to the west.
“The company is well-funded to complete the T3 Pit feasibility study and conduct a major expansion to the exploration campaign with numerous identified drill ready targets across our vast regional licence holding,” said MD Julian Hanna.
A prefeasibility study, the results of which were announced in January this year, determined that the T3 project would be a robust, long-life, openpit mining and processing operation. The project currently has a resource of 36-million tonnes at 1.14% copper, containing 409 000 t copper, and 14.8-million ounces of silver.
MOD owns 70% of a UK incorporated joint venture company, Metal Capital, with Aim-listed Metal Tiger.