TORONTO (miningweekly.com) – TSX-listed Curis Resources on Wednesday announced that it had arranged a C$7-million nonbrokered private placement financing, under which it would issue 11.67-million common shares at a price of C$0.60 apiece to existing shareholder Taseko Mines.

Taseko would then own 17% of Curis' outstanding shares and also retain information rights and a pro rata right to participate in future financings subject to customary exceptions.

"This investment represents strong support and confidence by a major Canadian mining company in the management and future prospects of Curis, and our flagship Florence copper project.

“Taseko is a long-term committed shareholder that will bring financial and technical strength to the Curis team. The funding will allow Curis to advance Florence copper through the final stage of project permitting for our first phase of project development and also support the ongoing development of the company," Curis president and CEO Michael McPhie said.

Proceeds from the private placement would be used to advance the development of Curis' in situ copper recovery project in Florence, Arizona. The private placement was subject to TSX approval and was expected to be completed in two tranches by January 2, 2014.

The Florence copper project is an advanced-stage copper development project, which has an estimated 340-million tons of probable mineral reserves, grading 0.358% total copper at a cutoff grade of 0.05% total copper, containing 2.42-billion pounds of copper.

Envisaged is a yearly production scenario averaging 55-million pounds of copper cathode for years 1 to 6, optimum production averaging 85-million pounds of copper cathode during years 7 to 21, and a decline thereafter.

The estimated initial capital costs have increased to $208-million for the base case from the estimated $196-million announced on February 13.

Copper production is scheduled to begin in 2016.

Following an extensive public consultation and review process, Curis had received a final amended aquifer protection permit (APP) from the state of Arizona’s Department of Environmental Quality.

This permit authorises the construction, operation and closure of a 24-well in situ copper recovery operation.

The APP is one of two significant operating permits that the Florence project requires to proceed with the first phase of operations. The second is the underground injection control permit, which is in the final stages of review by the US Environmental Protection Agency.