Zambezi sets sights on A$15.4m raising
PERTH (miningweekly.com) – ASX-listed junior Zambezi Resources is looking to raise up to A$15.4-million through an entitlement issue to complete the oxide bankable feasibility study (BFS) for its Kangaluwi copper project, in Zambia.
Zambezi said this week that it had reached an agreement with Patersons Securities to raise the capital through a seven-for-one renounceable pro-rata entitlement issue, at 1c a share, plus a one-for-three attaching option, also exercisable at 1c a share.
The entitlement would be partially underwritten to A$10-million.
Zambezi executive chairperson David Vilensky said that the raising would enable the company to eliminate debt and simplify its funding framework as it sought to secure the environmental-impact statement (EIS) for its Kangaluwi copper project.
The company would also look to terminate its current funding facility.
Upon the successful completion of the raising and the receipt of the outstanding EIS, Zambezi would finalise its oxide BFS at Kangaluwi.
Vilensky said that he was confident that the company had addressed all concerns in relation to the EIS, and had been advised of Presidential and government support for the project to move ahead.
“We look forward to receipt of the required EIS approval and finalising the BFS at Kangaluwi. We are focused on what needs to be done to get this company into production and we are taking the steps required,” he added.
Vilensky noted that the raising, along with the divestment of the company’s noncore assets, would provide Zambezi with the platform from which to move towards its goal of becoming a low-cost copper producer by 2015.
The Kangaluwi project currently hosts an estimated mineral resource of 46-million tons, at 0.67% copper, for 300 000 t of contained copper. A number of geophysical targets are yet to be evaluated, with only 20% of the exploration targets tested to date.
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