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General mining & base metals

Metminco sees Lanstead take 20% stake

The dual-listed junior has just completed a A$4.85mln placing

Metminco Limited (LON:MNC ASX:MNC) has a new major shareholder in the shape of financier Lanstead Capital with a 19.9% holding.

The dual-listed junior has just completed a A$4.85mln placing that will fund the next phase of development at the Miraflores project in Colombia.

The company used the fund raising to detail the expected milestones over the next six months.

Milestone 1: April 2017 - decision by the Corporación Autónoma Regional de Risaralda (CARDER) on Metminco's application to commence underground development in the second half of 2017 at Miraflores under the current approved EIA licence.

Milestone 2: April 2017 - completion of metallurgical testwork to confirm previous results following conditions established from the Feasibility Study test program, and to obtain additional design parameters (Phase 1 testwork).

Milestone 3: May 2017 - completion of Phase 2 metallurgical testwork on flotation concentrate and tailings for the Feasibility Study.

Milestone 4: First Half 2017 - completion of the Bankable Feasibility Study.

Metminco added it has also applied under its existing approved EIA [environmental permit] to commence early underground development in the second half of 2017 at Miraflores.

If this is allowed it would provide an opportunity to carry out a material amount of development work in advance of the mine build, which would reduce the lead ramp up time when Miraflores comes on stream.

The target is annual gold production of 50,000 oz.

Metminco also holds a 49% stake in the Los Calatos copper project in Peru.

Lanstead paid A$0.12 for its shares.

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