A well-known New York investor has backed Havilah Resources to the tune of $2 million as the copper play seeks to raise up to another $5.4 million to bring a suite of South Australian copper assets into production.

Bergen Asset Management, an institutional investor with a focus on direct investments in small-cap companies, has subscribed for 6.2 million shares in Havilah at 33c per share, a 13 per cent premium to its 29c closing price on October 2.

A funding agreement has also been inked between the investor and Havilah whereby Bergen will make regular payments to Havilah for up to 20 months. The payments will be calculated based on Havilah’s share price at the time and are not subject to a cap.

Havilah managing director Dr Chris Giles said the investment provides additional funding and a vote of confidence by a substantial institutional investor in Havilah’s copper growth strategy.

“This opportunity is enhanced through the ability to receive additional funding from further appreciation in Havilah’s share price over the next 20 months,” he said.

Havilah has also kicked off a renounceable rights issue of 27.1 million shares at a 20c issue price to raise up to $5.4 million before costs.

The 20c issue price represents a 31 per cent discount to its 29c closing price on October 2. The rights issue is partially underwritten for $1 million by lead manager CPS Capital Group.

All of Havilah’s directors will participate in the rights issue in a sign the company’s board believes in its future.

Funds will go towards advancing its copper-gold projects and making new mineral discoveries in the highly endowed but under-explored Curnamona Copper Belt.

Havilah’s three South Australian copper projects include Kalkaroo coper-gold, North Portia copper-gold and Mutooroo copper-cobalt.

Mineral resource inventory across the three deposits stands at 1.4 million tonnes copper. 3.6 million ounces gold and 17.5 million kilograms cobalt.

The company firmly believes it’s the right time to bring these projects into production as demand for copper and cobalt escalates on growing consumerism and the rising green energy revolution.

Shares in Havilah were trading 2c lower at 27c after coming out of a trading halt this morning.