AuTECO Minerals Limited (ASX: AUT) has received firm commitments for A$55M at an issue price of A$2.5c per fully paid ordinary share in its now fully underwritten two-tranche share placement.
The proceeds will be used, inter alia, to fund the acquisition of the Green Bay Copper-Gold Project in Newfoundland, Canada. The acquisition comprises an upfront consideration of A$35M in cash and A$15M in shares, followed by an additional A$7.5M cash payment and A$7.5M in shares within 18 months.
Mr. Parsons, managing director, said, “On behalf of the board, I thank investors for the huge support they have given to the Green Bay purchase and capital raising. We look forward to implementing our plan to grow the Green Bay resource as quickly as possible through an aggressive drilling programme which is due to start shortly.”
The successful placement, which will see several large Australian and overseas institutions become AuTECO shareholders, means the company is also fully funded for an aggressive exploration programme aimed at growing the Green Bay resource rapidly.
The resource growth programme includes plans for 700m of underground exploration development and 40,000m of drilling.
Further, as part of this 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.
To find out more, please visit www.autecominerals.com
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