Great Southern Copper PLC has secured £1.57 million to enhance its exploration efforts in Chile, including £1.04 million from an equity investment and a £522,000 convertible loan. The funds will support further drilling at the Mostaza Mine, following a recent successful drill program. CEO Sam Garrett expressed enthusiasm for the company’s prospects given the increasing global demand for copper.
Great Southern Copper PLC has secured a total of £1.57 million in new funding aimed at enhancing its copper-gold exploration activities in Chile. The funding package comprises £1.04 million in equity investment from an institutional investor and a £522,000 convertible loan from shareholder Foreign Dimensions. The financial resources will be utilized for the subsequent phase of drilling and exploration at the Mostaza Mine, Cerro Negro, which includes diamond drilling, metallurgical test work, and covering land holding expenses.
This latest fundraising effort follows a successful drill program, which yielded impressive assay results from the first drill hole, while the results from the remaining eight holes are still awaited. The equity investment facilitated the issuance of 36 million new ordinary shares at a price of 2.9 pence per share, with the convertible loan structured at the same per-share rate. This fundraising price reflects a premium over the five-day volume-weighted average price of 2.49 pence.
Great Southern Copper is committed to realizing the potential of its Chilean assets in light of the increasing global demand for copper. The company’s Chief Executive Officer, Sam Garrett, emphasized the significance of this moment for the organization, expressing eagerness to update stakeholders on the progress made in exploration efforts.
In summary, Great Southern Copper’s acquisition of £1.57 million in funding marks a pivotal advancement in its exploration initiatives in Chile. The combination of equity investment and a convertible loan is strategically aimed at bolstering drilling activities and further exploration, amid a booming demand for copper. Such financial backing positions the company favorably for future developments in its mining operations.
Original Source: www.proactiveinvestors.co.uk
