PERTH (miningweekly.com) – ASX-listed Superior Lake Resources has raised A$5-million through a share placement to institutional and sophisticated investors, to advance the feasibility study at its namesake project, in Canada.
More than 142.8-million shares were placed at a price of 3.5c each under the company’s existing placement capacity.
The placement price represented a 6.1% premium to Superior Lake’s last closing price on August 21.
“Following the outstanding initial Joint Ore Reserves Committee-compliant resource, which confirmed the Superior Lake project as one of the highest-grade zinc projects globally, we are weeks away from completing the restart study,” said CEO David Woodall.
“The A$5-million placement will allow the company to quickly transition to a feasibility study, which we expect to complete by mid-next year.”
Woodall said that to have completed the placement at a premium to the closing share price, despite what remain relatively difficult market conditions in the junior resource sector, was testament to the quality of the Superior Lake project.
Meanwhile, Superior Lake has appointed Tribeca Investment Partners to arrange project finance facilities of up to $60-million to assist in funding the development and restart of the Superior Lake project.
The appointment was subject to a due diligence on both the company and the project, obtaining investment committee approval, and the parties agreeing to project finance facility terms.
The Superior Lake project produced some 3.3-million tonnes over an 11-year period, producing 900-million pounds of zinc, 53-million pounds of copper and over 50 000 oz of gold.
The restart study is on track for completion in the third quarter of this year, with a feasibility study expected to start early in the fourth quarter, and to finish in the second quarter of 2019.