Polymetals Resources Ltd (ASX:POL) has completed a $3.6 million placement of shares to new investors at $0.31 per share to fund the company’s Endeavor Mine restart strategy.
The placement was strongly supported by new investment funds and sophisticated investors.
Polymetals will apply the funds to accelerate the mine restart study at its Endeavor Silver-Zinc-Lead Mine in the Cobar Basin, New South Wales, with a final investment decision (FID) in Q4 2023.
Polymetals executive chairman Dave Sproule said: "The support received through the placement to new Cornerstone and Institutional investors is a strong endorsement of the Endeavor project and confidence in Polymetals’ ability to execute on its plan to recommence mining at Endeavor.
“We welcome our new shareholders and look forward to delivering a positive Mine Restart Study and continue to build significant value for the company’s shareholders and positive outcomes for the Cobar Region.”
Read: Polymetals Resources commences Endeavor Mine restart study
The Endeavor Mine restart study marks an important step for the company as it moves forward with plans to revitalise the mine and tap into the potential of the polymetallic deposits in the Cobar Basin.
A key focus of the study will be the metallurgical test work on mineralisation at the mine’s Upper Main Lodes, aimed at maximising silver and gold recovery. This step is expected to be the longest lead item in the study.
Polymetals’ near-term plan is to explore gold and copper occurrences discovered by 402,000 metres of historical drilling.
Use of funds
Proceeds from the placement will be used to progress the Endeavor Mine restart strategy including:
- Mine restart study;
- in-mine exploration;
- Endeavor care and maintenance costs; and
- general working capital.