The 2024 field season at BRX’s TMT project starts in September. Pic: Getty Images
BRX closes $7.7m placement to roll out copper drilling at TMT
Mining
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- Belararox has received strong support to raise $7.7m
- Scotia Global Asset Management and Denala are set to join the share register
- Funds enable the engagement of drilling contractors for the TMT project
Special report: A $7.7 million placement has positioned Belararox to mobilise drilling contractors ahead of a program in September at the TMT copper-gold project in Argentina.
Belararox (ASX:BRX) is on the hunt for the next giant copper-gold porphyry system in Argentina’s San Juan province, in an underexplored area between the prolifically mineralised El Indio and Maricunga Metallogenic Belts, part of the Andean copper belt which hosts over 40% of the world’s copper production.
The company’s Toro-Malambo-Tombo (TMT) asset is strategically located smack-bang in the middle of several large operating mines and neighbours Filo del Sol, the project being acquired by BHP and Lundin for $4.5bn.
TMT is notched to the same belt as Filo del Sol, as well as the Los Helados and Potro Cliffs projects being developed by TSE-listed NGEx Minerals.
BRX has been systematically exploring its 32,000 hectare (320km2) landholding and working up its 12 porphyry targets with plans to start putting them to test with the drill bit in the upcoming field season in September.
Placement to drive TMT drilling
A successful $7.7m placement secured from new professional and sophisticated investors will be put towards BRX’s drilling campaign at TMT.
The placement comprises a first tranche of around 16m new fully paid ordinary shares to be immediately issued at $0.25 per share to raise ~$3.87m under the company’s placement capacity.
A further 15m new fully paid ordinary shares will be issued to Denala as tranche two, anticipated in the second half of September, subject to shareholder approval and will be issued at a 5-day VWAP prior to the date of shareholder approval.
BRX received strong support for the placement from several high-quality new investors including Scotia Global Asset Management in Canada and Denala Limited in Hong Kong.
The issue price at $0.25 per share represents a 10% discount to the last-close on 15 August ($0.28 per share) and a 3% discount to the 10-day closing average ($0.258 per share).
Drilling contracts to be signed imminently
BRX says the inclusion of the new funds in the company’s share register underscores the confidence in its potential and aligns with its strategic objectives to expand and strengthen its shareholder base.
“This is an important time for Belararox and its shareholders,” BRX managing director Arvind Misra said.
“The placement will allow the company to begin the first stages of an extensive drilling program, with contracts to be signed imminently.”
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.
