MOD Resources has received firm commitments to raise $10 million through an institutional share Placement with an additional $5 million fully underwritten Rights Issue to be offered to existing shareholders.
The majority of funds are intended for working capital to advance the T3 copper project towards production and defining additional resources within the surrounding T3 pxpansion project area.
Furthermore, following media speculation, MOD Resources announced the receipt of an unsolicited, non-binding, indicative and conditional proposal by ASX listed Sandfire Resources.
The proposal is to acquire 100% of the company's shares via an all scrip transaction equivalent to $0.38 per MOD share.
The Board believes this proposal undervalues the company's unique and extensive assets.
MOD Resources' T3 copper project in Botswana lies within a largely under-explored, highly prospective region offering a dominant copper-belt scale opportunity.
The T3 copper project, discovered in March 2016, presents the potential for a long-life, high-margin, open pit copper mine with significant exploration upside.
The company continues to progress the T3 Feasibility Study to reach a decision to mine in the first half of 2019.
MOD Resources has also advanced discussions with a number of parties which has provided the board with confidence in the availability of a range of funding options to progress the T3 copper project into production.
“Funding from this capital raise will enable the company to progress the T3 copper project towards a development decision and conduct further drilling for additional resources," comments MD Julian Hanna.
"The unsolicited, indicative proposal for 100% of the Company received from Sandfire confirms the potential of the T3 copper project, however the Board considers it significantly undervalues the assets of the company.
"With strong ongoing support of our shareholders through a placement and a fully underwritten rights issue, we believe that the company will have sufficient working capital to achieve our objectives," Hanna continues.