Belararox fully funded for TMT copper drilling after raising $8m

Belararox has raised $8m through an oversubscribed placement of 32 million shares priced at 25c each
Placement strongly supported by major shareholder Denala and new significant shareholder Ziwan Trading
Proceeds ensure company is fully funded for the drilling of the Tambo South and Malambo targets at TMT

Special Report: Investors have clearly demonstrated their confidence in Belararox and its Toro-Malambo-Tambo copper project in Argentina by significantly oversubscribing for a $8m placement.

Firm commitments were received from sophisticated and professional investors for more than the 32 million shares priced at 25c on offer, which falls within the company’s available placement capacity under ASX Listing Rule 7.1 and represents a 14.3% discount to the 10-day volume weighted average price of 29.2c.

Strong support was evident from several new high-quality investors as well as Belararox’s (ASX:BRX) major shareholder Denala Limited (Hong Kong), which is increasing its shareholding to 17.1% through the placement.

Ziwan Trading Co Limited has also become a significant shareholder after its $1.15m cornerstone participation in the placement.

Both Denala and Ziwan will settle their placement in a second tranche, which is expected to occur on or around mid-November 2024.

“The company is on track to commence drilling of two high-priority copper porphyry targets at the start of November, with site works currently underway and geologists on site,” managing director Arvind Misra said.

“Funds raised from this placement ensure the company is fully funded to execute its exploration program at the TMT project in Argentina.

“It is encouraging to see significant shareholders such as its major shareholder Denala participating in the raising, and the board thanks new and existing shareholders for their support.”

Funded for drilling

The placement ensures that the company is fully funded for the upcoming 6000m diamond drill program to test the Tambo South and Malambo targets within the TMT project.

3D interpretation of surface assay results has indicated that Malambo hosts two significant copper porphyry targets of considerable size – one near-surface and the other a deeper target.

Malambo also has a surface molybdenum anomaly with values similar to those at SolGold’s Alpala and Tandayama copper porphyry deposits in Ecuador.

Meanwhile, Tambo South is a complex target with multiple stages of intrusions and features hydrothermal alteration assemblages and quartz vein types consistent with global porphyry systems.

Additionally, assays from rock chip and talus samples and 3D geochemical models integrated with geological mapping have indicated that a second porphyry system is present in the TMT project in addition to the Malambo system.

This article was developed in collaboration with Belararox, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.