Money in the bank means Tanga’s Namibian foray is set to accelerate
Special report: Tanga Resources is poised to seriously step up its hunt for major copper, cobalt, zinc and gold deposits along Namibia’s well-endowed Damaran Belt following the completion of a heavily backed capital raising.
Perth-based Tanga (ASX:TRL) initially set out to raise $1.8 million through an entitlements issue priced at 0.4c offering two new shares and a free attaching option for every three held.
But the company announced on Tuesday it had raised $2.2 million after applications for the offer shortfall significantly exceeded the number of shortfall shares available.
To meet the strong demand, Tanga made the decision to place an additional 62,500,000 shares on the same terms, raising an additional $250,000.
The company said the net proceeds from the placement would be used predominantly to advance its Hagenhof copper-cobalt project and Joumbira zinc project, both of which lie on the Damara Belt.
Both projects have been acquired since mid-last year when the Tanzanian government’s desire to exert greater control over mining and energy operations through legislative means prompted Tanga to shelve its promising Hanang gold project in the country and shift focus to a more investor friendly jurisdiction.
Tanga acquired the rights to earn up to 90% of Joumbira, which is a joint venture with Namibian national mining company Epangelo Mining, in November last year and then took 100 per cent control of Hagenhof in a deal in August this year.
Earlier this month Tanga released the results of further surface sampling at Hagenhof, suggesting that it might be the company’s priority in the immediate future.
Sampling of the main outcropping gossan at Hagenhof returned grades of up to 3.54% copper and 324 parts per million (ppm) cobalt, with three of the eight samples collected returning grades above 0.3% copper.
These results further support the potential of Hagenhof as identified in historical drilling undertaken by Phelps Dodge Exploration Co Ltd and TG exploration in the early 1970s.
Several diamond holes drilled during that period intersected copper-cobalt bearing sulphides over significant widths including 18 metres at 0.9% from 93 metres including 3 metres at 2.37% copper from 96 metres and 24 metres at 0.88% copper from 74 metres.
Both these drill holes ended in mineralisation, while according to historic reports, cobalt to a peak value of 1,200ppm was shown to be associated with the copper mineralisation.
Tanga intends to test the grade and tenor of mineralisation reported in these historic holes with its own drilling in the coming months and will likely also use downhole electromagnetic geophysics to target additional high-grade copper-cobalt mineralisation.
The company also has a number of priority targets to follow up at Joumbira, with the hope of identifying additional high grade zinc-lead-silver mineralisation.
Three diamond holes drilled at Joumbira earlier this year intersected major zones of moderate to high-grade zinc mineralisation that remain open in all directions and offer the potential to establish a significant resource.
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