AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) is preparing to finalise the acquisition of the Green Bay Copper-Gold Project in Newfoundland, Canada, after receiving firm commitments for a share placement worth A$55 million in additional funding.
The proceeds will go to the project acquisition as well as an accelerated resource growth program including 40,000 metres of drilling and 700 metres of underground exploration development.
Green Bay currently holds a resource of 39.2 million tonnes at 2.1% for 811,000 tonnes of copper equivalent, with 68% in the higher confidence measured and indicated categories.
“On behalf of the board, I thank investors for the huge support they have given to the Green Bay purchase and capital raising,” incoming AuTECO managing director Steve Parsons said.
“We look forward to implementing our plan to grow the Green Bay resource as quickly as possible through an aggressive drilling program which is due to start shortly.”
Placement and acquisition details
Placement shares will be issued in two underwritten tranches at an issue price of $0.025 each.
The acquisition payment includes an upfront consideration of A$35 million in cash and A$15 million in shares followed by an additional A$7.5 million cash payment and A$7.5 million in shares within 18 months.
As part of the company’s exploration strategy and subject to completion of the acquisition, drilling will start imminently at the Ming Mine within Green Bay.
Drilling platforms are already available, meaning AuTECO can test key exploration targets such as the upper VMS horizons and Lower Footwall Zone extensions.
Subject to shareholder approval of the acquisition, founding Bellevue Gold Ltd managing director Steve Parsons will be appointed AuTECO managing director and founding Bellevue director Michael Naylor will be appointed executive director.