A Botswana copper mine is one step closer for Mod Resources after the company completed a $5.5 million institutional raising to accelerate the possible T3 development.
The West Perth-based company said it followed on from a scoping study that projected copper production of 21,000 tonnes per annum and 665,000 ounces of silver per annum over nearly 10 years.
Blue Ocean Equities was lead manager for the raising.
The latest cash infusion will go towards funding feasibility studies, with a decision to mine likely in early 2018, while exploration work will continue at the site early next year.
Earlier this month, Mod received a license extension from the Botswana mines minister.
Mod managing director Julian Hanna said he was pleased the raising had had strong support from institutional investors, and the company had broaden its investor base.
“Following completion of the scoping study at T3 just nine months after discovery, there is rapidly growing interest from institutions in Mod’s activities and the potential for further discoveries in this largely unexplored region of the copper belt,” Mr Hanna said.
“Funds raised in this placement will go a long way towards developing T3 and drilling many excellent targets around T3.”
Shares in Mod Resources were down 6.3 per cent 3 cents each at the time of writing, while the copper price was $US2.58 per pound, well down from 2011 levels of $US4+/lb.
