ASX-listed MOD Resources has welcomed a number of institutional investors onto its share register as a result of a A$14.6 million oversubscribed share placement.MOD Resources is actively exploring for sediment-hosted deposits in the Kalahari Copper Belt in Botswana with AIM-listed joint venture partner Metal Tiger (30%).
Funds raised from the placement will primarily be used towards a substantial CY17 exploration programme, which aims to extend the T3 open pit to the east and west and at depth, the T3 dome, and to test other targets in the T3 area and regionally.
MOD Resources is also conducting a pre-feasibility study (PFS) for an open pit mine at the potentially expanded T3 project. This includes baseline environmental studies and commencement of early stage permitting activities.
The placement, which remains subject to the clearance of funds, involved receiving firm commitments from sophisticated and institutional investors for 235.42 million fully paid ordinary shares at $0.062 per share to raise $14.6 million before costs.
[quote]The placement was done using the company’s existing placement capacity and the offer price represented a discount of approximately 2.2% to the 15-day volume weighted average price. Blue Ocean Equities acted as the lead manager to the placement.
MOD Resources has had significant exploration success in 2017 with the discovery of multiple substantial copper zones below the existing T3 resource. On 6 March 2017, MOD Resources announced an intersection of 72.6 m at 1.5% copper and 27g/t silver, which included 18 m at 2.7% copper and 52g/t silver below T3.
“The board is pleased to see such high calibre institutions support our growth strategy by participating in this placement. We look forward to an exciting period of exploration and project development in this highly prospective region,” states MOD Resources chairman, Mark Clements.
Featured image credit: MOD Resources