PERTH (miningweekly.com) – ASX-listed copper developer Avanco Resources has raised A$18.1-million in a share placement to fund the further development of its expanded Pedra Branca project, in Brazil.

Earlier this month, Avanco announced that it had secured $70-million in project finance for the Stage 1 development of the Pedra Branca mine, which would see the smaller Antas North project deliver about 12 000 t/y of copper and 7 000 oz/y of gold.

The Stage 1 development would have a nine year life-of-mine, and would have a net present value of $224-million and an internal rate of return of 94%.

However, the miner said that subsequent to the funding announcement, it had received a significant number of investor inquiries relating to the Stage 2 development of Pedra Branca, and the prospectivity of the regional exploration programme.

“This level of enthusiasm was gauged as warranting further financing to facilitate an immediate resumption of main field activities at Stage 1 and Stage 2, and planning an exploration programme for Stage 3,” Avanco said on Wednesday.

Stage 2 development could see the production move to between 40 000 t/y and 50 000 t/y of copper metal.

Following the completion of the latest A$18.1-million share placement, in which shares were placed at A$0.075 each to existing major shareholders, as well as domestic and international institutions and sophisticated investors, Avanco would now start early works at Stage 1.

The additional funds were expected to facilitate a seamless transition through to the drawdown of the senior debt facilities and the BlackRock funds, and would allow for the procurement, construction and commissioning of Stage 1 to be expedited more efficiently, with start up now targeted for the first quarter of 2015.

In parallel with this, funds have also been allocated for infill drilling and mining studies for the Stage 2 development.

A decision to mine the greater Pedra Branca project was expected by mid-2015, and would coincide with early cash flows from the Stage 1 operation.