Base Metals: Mincor raising $60m to accelerate Kambalda exploration
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Nickel has been on a bit of a run in recent months as demand for its use in electric vehicle batteries rises rapidly.
This bullish sentiment could go a long way towards explaining the keen interest in Mincor Resources’ (ASX:MCR) fully underwritten placement of shares priced at 72c each to raise $50m.
The two-tranche placement is priced at a 4.6 per cent discount to the five-day volume weighted average price of the company’s shares.
Existing strategic shareholder IGO Limited (ASX:IGO) has already committed to subscribe for up to $13m of the placement, while eligible shareholders will have the chance to acquire up to $15,000 worth of shares each at the same price.
The share purchase plan is capped at $10m, though Mincor reserves the right to accept oversubscriptions.
Proceeds will be used to progress a final investment decision for its Kambalda nickel operations; undertake resource extension and exploration programs; and negotiate debt funding for project development.
Copper has also been flying on the expectation of demand growth from infrastructure-focused stimulus programs as well as pandemic-related supply disruptions.
Redstone Resources’ (ASX:RDS) shares jumped 25 per cent this morning to 1c after a recent drill program at its West Musgrave project in Western Australia returned high-grade copper hits.
Significant intercepts from drilling at the Tollu copper vein include 13m at 3.04 per cent copper from 56m that includes an 8m interval at 4.4 per cent copper, 26m at 1.03 per cent copper from 277m and 11m at 1.4 per cent copper from just 4m.
“Redstone has proven short to medium scale continuity, both laterally and to depth, of the thick high-grade lens of copper mineralisation intersected at the Forio prospect,” chairman Richard Homsany said.
“In addition, the company has shown that very thick mineralisation discovered at the intersection of the Chatsworth and Eastern Reef vein systems is not lost at depth as was previously thought.
“These results validate the prospectivity of Redstone’s tenure to host potential economic copper mineralisation.”
Meanwhile, Emmerson Resources (ASX:ERM) has intersected visible copper sulphides from drilling at its Kiola project in New South Wales.
The initial four-hole program has extended mineralisation associated with the Nasdaq skarn. Assays are expected in the second half of July.
The results will be used to update the company’s geological model and further refine the next drill campaign later this year.