Elementos (ASX:ELT) is raising up to $2 million from investors to progress the development of its Cleveland tin, copper and tungsten mine in Northwestern Tasmania.
The company plans to develop the mine in three stages - tailings reprocessing, open pit mining and the redevelopment of the existing underground mine.
Elementos is raising $600,000 from a private placement to sophisticated investors at $0.006 per share, including $480,000 from Jervois Mining (ASX:JRV).
The company is also raising up to $1,423,947 from a non-renounceable rights issue to eligible shareholders at $0.006 per share, on the basis of one share for every four shares held.
Money raised from the placement and the rights issue will be used for the purposes of completing a diamond drilling program targeting an increase in the Cleveland open cut resource.
It is worth noting that the Cleveland Underground Mine has an existing indicated and inferred resource of 6.6 million tonnes at 0.63% tin and 0.25% copper.
Elementos will also carry out metallurgical testing, geotechnical studies and environmental compliance studies on the proposed Cleveland open cut development.
The company recently completed a ground magnetic survey which identified a number of new exploration targets along strike from the historical workings and within the mine sequence.
Elementos had previously received approval to proceed with the drilling program at Cleveland.
The company plans to commence drilling in August 2017 for which preparations have commenced.