TSX-V-listed ScoZinc Mining plans to raise C$500 000 in a nonbrokered private placement.
The offer consists of the sale of up to 1.25-million shares at a price of C$0.40 apiece, coupled with a warrant to purchase additional shares at a price of C$0.55 apiece.
“We are pleased to provide an opportunity for qualified investors to participate in our scheduled private placement that is designed to complete additional de-risking work necessary for the prefeasibility study of our Scotia lead/zinc mine, in Nova Scotia,” commented president and CEO Mark Haywood.
Following a previous private placement in August last year, the company almost doubled the Scotia mine’s mineral resource, cleared all extensive past debts of the company and assembled a quality mine site team to produce the prefeasibility study (PFS).
So far, work on the PFS is progressing well and indicates a longer mine life, as well as improved economics – even in the current lower commodity price environment and amid high concentrate treatment charges, the company reports.
A December 2018 preliminary economic assessment for the mine calculated a restart capital requirement of C$27-million.
The mill will operate on a 3 000 t/d basis for 6.4 years, delivering 325-million pounds of zinc and 185-million pounds of lead over this time.
As it stands, the project has total measured and indicated resources of 25.45-million tonnes at a zinc-equivalent grade of 2.84% and total inferred resources of 5.01-million tonnes at a zinc-equivalent grade of 2.13%.