Metallica raises funds for Cape Flattery
PERTH (miningweekly.com) – ASX-listed Metallica Minerals will raise up to A$4.9-million to fund the next phase of development of its Cape Flattery silica sand project, on the Cape York Peninsula.
Metallica will undertake a fully underwritten one-for-two renounceable rights issue, priced at 3c each. With every two new shares issued, the company would also issue one free attaching option, with an exercise price of 6c each and a three-year term.
The company told shareholders on Thursday that private investment vehicle Ilwella would become a cornerstone investor, sub-underwriting some A$2.2-million of the capital raise.
The capital raised will go towards further resource drilling and evaluation over the 38.3-million-tonne resource, as well as finalising the scoping study for the project.
Funds would also go towards the mining lease application, environmental studies and to undertake a prefeasibility study into the development of the Cape Flattery project.
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