Perth-based emerging copper miner Tiger Resources has announced the completion of an $8.9 million Share Purchase Plan (SPP).
Perth-based emerging copper miner Tiger Resources has announced the completion of an $8.9 million Share Purchase Plan (SPP).
Tiger received acceptance for 49.3 million shares.
The SPP offer was originally 10 million shares, but the company decided not to scale it back because of the support shown by shareholders, expected funding obligations and potential opportunities.
In a statement, Tiger Resources said that assuming the second tranche of the SPP is completed the company expects to have cash reserves totaling $30 million.
In addition the company has arranged a US$15 million loan facility from Trafigura Beheer B.V.
"The response from shareholders to the SPP has been very pleasing, and shows we have an extensive and very supportive shareholder base," said Tiger chairman Reg Gillard.
"Shareholders clearly have a positive view on Tiger's prospects as it moves closer to becoming a copper producer at Kipoi," he said.
See full company statement below:
Perth-based emerging copper miner Tiger Resources Limited (ASX/TSX - TGS) ("Tiger" or the "Company") is pleased to announce that it has closed the Share Purchase Plan ("SPP") on 24 June 2010 as scheduled.
The SPP offer has received significant support from shareholders, resulting in Tiger receiving acceptances for 49.3 million shares for gross proceeds of $8.9 million. Chairman Reg Gillard has commented "The response from shareholders to the SPP has been very pleasing, and shows we have an extensive and very supportive shareholder base. Shareholders clearly have a positive view on Tiger's prospects as it moves closer to becoming a copper producer at Kipoi."
Whilst it was initially proposed the SPP would offer a total of 10 million shares, the Company has considered the support shown by shareholders, expected funding obligations and potential opportunities, and determined it will not apply any scaleback.
Assuming completion of the second tranche of the share placement announced on 2 June 2010 (which is subject to approval by shareholders at the meeting being held on 15 July 2010), the Company expects to have cash reserves totalling $30 million. In addition the Company has arranged a US$15m loan facility from Trafigura Beheer B.V.
Based on the current funding arrangements the Company is in a strong position to meet project expenditure commitments for the Kipoi Stage 1 development and continue with further exploration drilling at a number of highly prospective exploration targets. The Company will also be in a position to pursue opportunities that may arise to enhance its position in the Katanga copperbelt.
Background
The Kipoi Project covers an area of 55 sq kms and is located 75km north‐north‐west of the city of Lubumbashi in the Katangan Province of the DRC. The Project contains a 12km sequence of mineralised Roan sediments that host at least five known deposits: Kipoi Central, Kipoi North, Kileba, Judeira and Kaminafitwe. The Company has reported JORC standard resources at three of the deposits. The principle deposit is Kipoi Central which contains a zone of high grade copper mineralisation within a much larger lower grade global resource. The Company proposes a staged development at the Kipoi Project. The high grade zone of mineralisation at Kipoi Central is proposed to be exploited during the Stage 1 development, which is intended to commence production at end of 2010. During the three year life of Stage 1 a total of 900,000tpa of 7% Cu is planned to be processed through a Heavy Media Separation plant to produce the equivalent of 35,000tpa of Copper.