21/04/2021 - 14:30

Newcrest, IGO back Antipa raising

21/04/2021 - 14:30

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Antipa Minerals has secured $22 million from a share placement, which will be used to fund ongoing exploration across the company’s gold and copper tenements in WA.

Newcrest, IGO back Antipa raising
Antipa wants to maintain a 35 per cent stake in the Citadel copper-gold JV with Rio Tinto. Photo: Antipa Minerals

Antipa Minerals has secured $22 million from a share placement, which will be used to fund ongoing exploration across the company’s gold and copper tenements in Western Australia.

The raising was supported by major shareholders Newcrest Mining and IGO, which have joint venture arrangements in place over two Antipa projects in the Paterson province, in WA’s East Pilbara region.

Antipa also has a JV with Pilbara mining giant Rio Tinto over the junior’s Citadel copper-gold project, located about five kilometres east of Rio's Winu discovery.

Today, Antipa said proceeds from the placement would be used to maintain the company’s interest in the Citadel JV at 35 per cent, as well as accelerate exploration and appraisal activities at Minyari Dome: a geological structure within Antipa’s North Telfer gold-copper-silver project.

Chairman Stephen Power said both projects offered Antipa short- to medium-term production opportunities, with significant exploration programs to be undertaken this year.

He said the Citadel JV in particular had potential to drive significant value for shareholders.

Rio began exploring the project in 2015 under a farm-in arrangement that could earn the iron ore giant a 75 per cent interest in Citadel if it spent $60 million within 10.5 years.

So far, Rio has spent more than $25 million, taking its stake in the project to 65 per cent.

Meanwhile, the 2021 Citadel exploration program budget has been expanded, from $13.8 million to $24.5 million.

It will include a 19,000-metre reverse circulation and diamond core drill program focused on the project’s Magnum Dome area, which hosts gold-copper-silver mineralisation.

Antipa will issue about 524 million shares under the placement, to be jointly led by Euroz Hartleys and Canaccord Genuity.

As Antipa's largest shareholder, Newcrest has committed to subscribe for about $2.4 million worth of shares to maintain its 9.9 per cent shareholding while IGO has agreed to invest $1.2 million to keep its 4.9 per cent interest.

Antipa will also undertake a share purchase plan to raise a further $3 million.

Both offers are priced at 4.2 cents per share, which represents about an 18 per cent discount to Antipa's last closing price (April 16).

The company emerged from a trading halt this morning, closing down about 6 per cent to trade at 4.8 cents per share.

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