PERTH (miningweekly.com) – Copper developer Hillgrove Resources will raise A$10-million in a share placement to accelerate exploration and development work at its Kanmantoo project, in South Australia.
The company on Wednesday reported that it would issue some 192.3-million fully paid ordinary shares at a price of 5.2c each to institutional and sophisticated investors under its existing placement capacity.
The company is also proposing to offer existing shareholders the opportunity to take part in a share purchase plan (SPP), with shareholders having the chance to subscribe for up to A$30 000 worth of new shares in the company, also at a price of 5.2c each.
The SPP is expected to raise a further A$2-million.
Hillgrove noted that funds raised would be used to accelerate exploration and development activities, including a 16 km drill programme targeting resource extensions planned for October this year, a preliminary capital expenditure and operating expense study, completing a mineral resource estimate, establishing a portal and underground drill platforms, and starting the exploration decline at Kanmantoo.
“Drilling to date has demonstrated that the ore lodes mined in the Kanmantoo openpits continue below the base of the pits with grade, width and continuity to support underground development. I expect that recent drilling will increase the existing resource and with this raising, we will continue drilling and accelerate development plans ahead of a planned mine recommencement next year,” said MD Lachlan Wallace.
“I am confident that the planned works will create value for our shareholders through the potential recommencement of copper and gold production at Kanmantoo, which enables us to unlock the value of the region through further advancement of the near mine and regional exploration projects.”