ASX-listed Sipa Resources intends to further exploration programs at the Paterson North copper-gold project and its Akelikongo nickel sulphide discovery in Uganda.Sipa Resources has raised A$2 million through a share purchase plan (“SPP”) to underpin further exploration programs at its Paterson North copper-gold project in Western Australia and at its Akelikongo nickel sulphide discovery in Uganda.
The SPP will allow all eligible Sipa Resources shareholders to purchase up to $15 000 worth of new fully-paid
ordinary shares in Sipa Resources at 1.2 cents per share.
The offer price was calculated at a discount of 17.3% to the volume weighted average price of fully-paid ordinary shares, calculated over the last five days on which sales of shares were recorded before the day on which the plan was
The proceeds of the SPP, together with Sipa Resources’ cash reserves (~$2.3 million at the end of the June
quarter), will ensure that Sipa Resources is in a strong position to continue to progress ongoing exploration
programs during the current field season.
Use of funds
The funds raised from the SPP will be used as follows:
In the Paterson Province, Western Australia: To follow up on the diamond drilling program currently underway at Paterson North, with RC or further diamond drilling.
Drilling conducted earlier in 2017 has identified a focused copper-rich alteration zone >1 000 ppm Cu zone
with RC intercepts such as 102m of > 900 ppm Cu (+Ag, Mo, W) open at the end of hole within a more extensive copper-polymetallic anomaly of over 4 km in length.
The zone has a strong correlation with IP chargeability and resistivity data, a strong magnetic high and Audio Magneto Telluric Data.
A 1 500 m diamond drilling program commenced recently with the first hole completed and the second hole currently in progress.
The project, a Farm-in and Joint Venture with Ming Gold , which enables Sipa Resources to earn up to 80%
by expending $3 million over four years, is adjacent to tenements containing Antipa Mineral’s Calibre
and Magnum deposits further to the south where Rio is earning in by joint venture. Rio is exploring
tenements adjacent to Sipa Resources in addition in their own right. Sipa resources has currently earned 51%.
At Akelikongo in Northern Uganda: To continue to delineate the higher grade massive sulphide zones in the basal and channel flow positions within the Akelikongo magmatic nickel sulphide system.
The latest results such as 84.5m @ 0.37% Ni and 0.16% Cu have continued to improve in both grade and width and include further massive intercepts such as 7m @ 1.04% Ni, 0.35% Cu and 0.05% Co.
Plans are in progress to complete a high powered FLEM survey to further delineate these massive sulphide zones.
Lastly, the funds will also provide additional working capital for Sipa Resources.
Feature image credit: Wikimedia