New World to raise $20m towards Antler copper development
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New World Resources will raise $20 million through an institutional placement to accelerate development of the Antler copper project in Arizona.
New World (ASX:NWC) has received firm commitments for the raise, which will be made via a two-tranche placement of 200 million new fully-paid ordinary shares to institutional, sophisticated and professional investors.
The shares will be issued at 10c each – 9.1% discount to NWC’s last closing price, a 2.7% discount to the 5-day volume-weighted average price (VWAP) and a 9.3% premium to the company’s 30-day VWAP.
The money will allow New World to accelerate the development of Antler, a historic high-grade project where ongoing drilling has continued to deliver promising results.
“It is very pleasing that the considerable success we have been enjoying with our drill rigs at the high-grade Antler copper project is now being widely recognised and has translated into very strong support from investors to allow us to accelerate our activities,” managing director Mike Haynes said.
“We are successfully demonstrating the substantial potential of the project, and the completion of this placement ensures we are fully-funded to expeditiously advance resource expansion drilling, mine permitting activities and feasibility studies, as we continue to work towards restarting operations at Antler as soon as practicable.
“We thank investors for their continued support.”
The company said net proceeds from the placement would be used to fund resource drilling, JORC resource estimation, metallurgical testwork, mine and processing design and engineering, feasibility studies, hydrology and baseline environmental studies, mine permitting, resource to reserve drilling, and working capital.
Last mined in 1970, New World is fast-tracking Antler back to production with a target of first copper production in 2024. A maiden JORC resource is expected mid-2021.
The company was recently named one of 10 copper juniors to watch by Stockhead’s Garimpeiro columnist Barry Fitzgerald after Goldman Sachs made a bullish prediction for the future of the red metal.
This article was developed in collaboration with New World Resources, 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.