New World raises $10m on copper exploration successes
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Special Report: New World’s continued drilling successes at its Antler copper project in Arizona has drawn investors to commit to a $10m share placement.
Institutional, sophisticated and professional investors will take up 200 million new shares priced at 5c each under the placement, which is lead managed by Canaccord Genuity.
Notably, the price represents a 0.5 per cent premium to the 30-day volume weighted average price of New World Resources’ (ASX:NWC) shares.
Proceeds from the placement will be used to accelerate work programs at Antler where the company is pushing aggressively to recommence copper mining operations for the first time since 1970.
“During recent months we have continually discovered extensions of very thick, high-grade, copper mineralisation as we have drilled progressively deeper below the workings at the historical Antler Copper Mine,” managing director Mike Haynes noted.
“The high grades reported stand out from our peers’. And this has attracted the attention of the investment community.
“With near-term production potential from a project located in a tier 1 jurisdiction, and approximately $12m cash at bank on completion of this placement, New World is now very well positioned to leverage from the strengthening copper price.”
Copper is currently priced at $US7,688.15 per tonne, up 24.7 per cent from the beginning of this year.
Recent drilling at Antler has indicated that not only does high-grade copper mineralisation extend pretty deep, it also appears to increase in quality at greater depths.
This follows up on previous outstanding assays, leading the company to say that it is rapidly delineating a substantial and coherent thick zone of high-grade mineralisation that extends more than 350m down-dip from historical workings.
Drilling is ongoing at the Antler deposit with New World recently completing four reverse circulation pre-collars that are now being systematically completed with diamond core tails.
Two diamond drill rigs and one reverse circulation rig will be operating at the project through December and well into the 2021 calendar year.
New World plans to evaluate depth extensions of the very thick, high-grade mineralisation and the poorly explored strike extensions of the Antler deposit. These will focus on the south where strong induced polarisation and magnetic anomalies coincide with outcropping mineralisation that has been mapped over more than 750m of strike.
This article was developed in collaboration with New World Resources, a Stockhead advertiser at the time of publishing.