Resources explorer Mining Group has raised $3 million from investors, to continue development works at its El Roble copper project in Chile.
Mining Group said the share placement, priced at 2.5 cents per share with one free attaching option for every two shares, would be completed in two tranches.
The first tranche will be placed with sophisticated investor clients of lead manager Cygnet Capital, while the second tranche will remain subject to shareholder approval.
Cygnet will receive a 7 per cent fee under the placement.
“The funds raised from the placement will be applied towards the initial consideration payments pursuant to the El Roble project option agreement, assessment of underground mine areas and mineralised waste dumps, including metallurgical testing, the costs of the placement and general working capital,” Mining Group said in a statement.
The company said it would commence an extensive exploration program at the tenements, comprising drilling, mapping, sampling and geophysical surveys.
At close of trade today, Mining Group shares had sunk 15.6 per cent, trading at 2.7 cents.