Exploration company Chakana Copper, which is advancing the Soledad project in Peru, has extended its nonbrokered private placement to raise C$2.2-million to January 12.
To date, the company has closed C$821 659 of the private placement.
To raise its targeted C$2.2-million, Chakana planned to place 55 000 000 units at C$0.04 a unit.
Gold Fields Nazca, a wholly owned indirect subsidiary of South Africa-headquartered Gold Fields, has exercised its participation right to purchase 8 555 643 units in the first tranche of the placement for a total of C$342 225.75 and currently owns 19.9% of the outstanding shares in the company.
Gold Fields will also participate in the second tranche of the financing.
Chakana plans to use C$2-million of the proceeds of the private placement for exploration drilling and development at Soledad – a high-grade copper/gold/silver discovery in the Ancash region.
An initial inferred mineral resource of 191 000 oz of gold, 11.7-million ounces of silver, and 130-million pounds of copper hosted in tourmaline breccia pipes and open at depth was published in the first quarter of 2022, contained in 4.8-million tonnes grading 0.72 g/t gold, 61 g/t silver and 0.97% copper assumed to be extractable by underground mining methods, plus an additional inferred resource of 1.9-million tonnes grading 1.29 g/t gold, 37.1 g/t silver and 0.65% copper assumed to be extractable by openpit mining methods.
The currently defined resource reflects only a small portion of the potential of the Soledad mineral system as the tourmaline breccias are just one of several mineralisation styles related to a major intrusive center at Soledad that are subject to ongoing exploration.