Mod raises $18m

Copper explorer MOD Resources has tapped investors for $18.3 million, with the proceeds set to be used on exploration work at its T3 and T20 Dome projects in Botswana.

The company said it had raised $12 million via the issue of 255 million shares at 4.7 cents each, representing a 9.8 per cent discount to 15-day volume-weighted average price.

Blue Ocean Equities and Ashanti Capital acted as joint lead managers to the placement.

Perth-based Mod has also announced a fully underwritten non-renounceable rights issue to raise $6.3 million at the same price as the placement.

The rights issue has been underwritten by Blue Ocean Equities, with Hong Kong investment fund LIM Advisors sub underwriting, and entitles shareholders to one new share for every 16 shares held.

Managing director Julian Hanna the majority of funds will be applied to a major expansion of exploration activities along the T3 Dome, T20 Dome and across the company’s wider regional holdings.

“The company is well funded to complete the T3 Pit feasibility study and conduct a major expansion to the exploration campaign with numerous identified drill ready targets across our vast regional licence holding,” he said

“This coincides with a greatly improved understanding of the geology and potential of the Kalahari copper belt, and the successful application of airborne EM to generate new targets over large areas.”

The company recently released a favourable pre-feasibility study for an open-pit mine at its T3 project, which has an estimated annual free cash flow of $US77 million.

Shares in Mod were flat at 5 cents each at 1pm AEDT.