Consolidated Zinc Ltd (ASX:CZL) will use $500,000 in funding from execution of a convertible note to advance its Plomosas Zinc Project in Mexico.
Copulos Group, controlled by Consolidated Zinc’s chairman Stephen Copulos, is the major shareholder providing the funds.
The term of the convertible note is 12 months, with interest payable of 10% per annum paid on maturity or conversion to shares.
Conversion is at 1 cent per share or the same price as the next capital raising, whichever is lesser.
Cash to go towards restarting production at Plomasas Zinc project
Consolidated Zinc chief executive officer Brad Marwood thanked the Copulos Group for its ongoing support of the company and its objectives.
“The funding will be used to continue the evaluation of the Plomosas Zinc Project aimed at restarting production with initial stage I development in 2018.
“This will involve the refurbishment of the on-site plant and mining of the Tres Amigos mineralisation for which the costings and contractor submissions are being received.”
READ: Consolidated Zinc intersects thick massive sulphides in Mexico
Historical mining at Plomosas between 1945 and 1974 extracted over 2 million tonnes of ore grading 22% zinc and lead and more than 80 g/t silver.
The project has 968,000 tonnes at 15.9% zinc-lead and 24 g/t silver for 154,000 tonnes of contained metal in both the indicated and inferred categories.
The company’s focus is to identify, explore and exploit new zones of mineralisation within and adjacent to the known mineralisation at Plomosas.