Tell the world: New World Resources funded for major PFS work at Antler copper mine after $8 million raising
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New World Resources has banked $8 million in a significant capital raise that will fund several big steps to put the Antler copper mine on the path to production.
New World (ASX:NWC) has received firm commitments to issue 250 million shares at 3.2c in the Canaccord and Euroz Hartleys led raise, which will underpin work to deliver a landmark pre-feasibility study on the high-grade copper project in Arizona.
Works funded by the big cash injection will include an update of the JORC mineral resource at Antler based on eight months of extensional drilling, building on the impressive maiden resource estimate of 7.7Mt at 2.2% copper, 5.3% zinc, 0.9% lead, 28.8g/t silver and 0.18gt gold defined last year.
That underpinned a scoping study this month which put a US$201m price on constructing the mine, which would generate US$952m of free cash flow over its initial 10-year operating life with a pre-tax IRR of 42% on around 30,000t of copper metal equivalent production a year.
New World is seeking to grow that even further, with funds from the raising to go towards the PFS, exploration to extend Antler at depth, an induced polarisation survey over soil geochem anomalies along strike from Antler, and drilling to test new targets identified in the survey.
Drilling will also be conducted to convert resources into mineable reserves alongside mine permitting and working capital.
The placement will be to professional, institutional and sophisticated investors under New World’s existing placement capacity.
On top of that, an EGM will be held to approve a $160,000 investment from NWC directors, a sign of the board’s confidence in the Antler project and desire to get skin in the game.
NWC MD Mike Haynes said the company was pleased with the support investors have shown through the placement.
“We are very pleased to have received such strong support for the placement which will be used to continue to advance the brownfields Antler Copper Project towards production while at the same time progressing an expansive exploration campaign aimed at pursuing the considerable opportunities we have identified to expand the high-grade Mineral Resource base,” he said.
“The Project’s economics already look very robust. But with a larger resource base – which we think we can realise by testing both depth and strike extensions of the high-grade mineralisation – we are confident we can further enhance the economics.
“An initial component of the redevelopment program, as part of the PFS, will be to update the JORC Mineral Resource later this quarter once additional assay results are returned from our ongoing extensional drilling program.
“I’d like to take this opportunity to thank our shareholders for their continued support.”
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.