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Avanco raises funds to advance Antas

Avanco raises funds to advance Antas

Photo by Bloomberg

16th May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Copper developer Avanco Resources has raised A$23-million through a placement to strategic investors.

The ASX-listed company said on Friday that it had issued more than 306.6-million shares at a price of 7.5c each to raise the proceeds. The placement price was a 10.3% premium to the company’s last closing price.

MD Tony Polglase said that the proceeds placed the company in a robust position to advance towards production at its Antas copper mine, in Brazil.

The company was currently fast-tracking the Stage 1 development of Antas, which would see the smaller Antas North project deliver about 12 000 t/y of copper and 7 000 oz/y of gold.

Initial production from Stage 1 has been targeted for early 2015.

The Stage 2 Pedra Branca project was currently estimated to host 46.8-million tonnes of ore for about 560 000 t of copper, 500 000 oz of gold and more than one-million ounces of silver. Stage 2 development could see the production move to between 40 000 t/y and 50 000 t/y of copper metal.

The project was being advanced to a decision to mine by mid-2015.

Polglase said that the Avanco board was comfortable that the company was well positioned to not only take the Stage 1 operation to commissioning, but also to reach a decision to mine on Stage 2, while exploring for a possible Stage 3 regional development.

Edited by Creamer Media Reporter

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