Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed zinc developer New Century Resources will raise A$52.9-million through a share placement to progress the restart of its Century zinc mine, in Queensland.
The company will place some 44-million new shares to institutional and sophisticated investors, priced at A$1.20 each, to raise the capital. The placement represents a 10.4% discount to the company’s last closing price, and a 15.7% discount to the five-day volume-weighted average price of New Century shares.
The shares issued will represent about 15% of New Century’s undiluted share capital immediately following the completion of the placement.
New Century chairperson Evan Cranston said on Friday that proceeds from the raising would allow the company to restart the Century zinc mine, as well as to fund the company’s corporate, general and administrative costs through to mid-2018.
New Century is considering a tailings operation at the project area to treat the 78.9-million tonnes of resource at the project, which is estimated to contain some 2.38-million tonnes of zinc, 370 000 t of lead and 31.5-million ounces of silver.
A restart feasibility study is currently under way, which will include the economic evaluation of tailings reprocessing, an independent review of project recoveries and the existing plant configuration, as well as the potential conversion of the existing mineral resource into an ore reserve.
The restart study is slated for completion in late November.