AusAmerican launches fresh share placement

Perth-based explorer Australian American Mining Corporation has announced further capital raising plans as it looks to bring its American copper interests to production.

AusAmerican said today that it planned to raise $360,000 through a placement to sophisticated investors of 36 million shares at 1 cent per share.

The company is also in negotiations with an investor to raise a further $2.5 million through a convertible note instrument.

This follows news that the company had received a $10 million debt finance term sheet from a private lender based in the American state of Utah. 

AusAmerican confirmed last month that it had entered into a letter of intent with US company Taylor Western Resources to acquire a 50 per cent interest in the Victoria Copper Mine project in Nevada.

The mine was discovered and explored underground in the 1940s but there has been no production since 1981.

AusAmerican hopes to secure the capital required to bring the mine back to production and says it is in discussions with a number of other potential financiers.

Shares in AusAmerican were more than 11 per cent higher at 1 cent at 10:05AM WST.