Highlights:
- Raised total of £1.57 million through:
- A subscription for 36 000 000 new ordinary shares of 1p each in the company at a price of 2.90p.
- A £522 000 convertible loan note from the existing majority shareholder FDPL, convertible at 2.90p per ordinary share.
- Proceeds will mainly be used to accelerate the drilling and exploration programme at Mostaza Mine, Cerro Negro, including the next phase of diamond drilling, commencement of metallurgical test work, and payment of option and land holding costs.
- The next campaign will build on the recently completed drill programme that delivered an outstanding assay result from the first drill hole, with assays from the remaining eight drill holes pending.
- The fundraise was carried out at 2.90p, compared with a 2.49p five-day VWAP and no warrants.
Sam Garrett, Chief Executive Officer of Great Southern Copper plc, said:
“The recent drilling at the Mostaza Mine and the outstanding assay results on drill hole CNG25 DD001 have underscored the potential of the opportunity at Cerro Negro. These results have garnered significant interest from a number of institutions, which is pleasing given the ongoing difficulties in the capital markets. Receiving additional funding from our major shareholder further demonstrates their confidence in our exciting exploration portfolio and strategy.
“The funds will be strategically allocated towards further drilling at Mostaza, and to commence metallurgical test work, allowing us to rapidly advance what we believe has the potential to be a high grade high-value Cu-Au deposit. This is a very exciting moment for the company and we look forward to updating the market on our progress.”