Silver City Minerals Ltd (ASX:SCI) (FRA:AUT) has raised $570,000 from high-quality investors in a placement led by Empire Capital Partners Pty Ltd.
The base and precious metals explorer’s placement to sophisticated investors was priced at 1.2 cents a share and will include a one-for-two free-option priced at 3 cents that expires in three years.
Silver City’s shares closed unchanged today at 1.6 cents.
BIG PICTURE: Silver City Minerals plans more drilling to test copper-gold potential at Copper Blow
The company’s placement will add 47.5 million new shares to the register, priced at a 25% discount to its 15-trading-day volume-weighted average price.
Silver City expects to settle the placement in the next week or so as the Australian Securities Exchange prepares to close for Christmas Day and Boxing Day, New Year’s Eve and New Year’s Day.
Silver City’s lead project is the Copper Blow iron ore, copper gold (IOCG) discovery 20 kilometres south of Broken Hill in New South Wales.
The explorer has completed 8,000 metres of drilling at the Copper Blow project, focusing on a 1-kilometre zone that is part of a wider ironstone zone that extends more than 4.5 kilometres.
Highlighted intersections reported over the past 14 months include 7 metres grading 3.7% copper and 1.07 g/t gold; 4 metres grading 6.1% copper and 4.23 g/t gold and 13 g/t silver; 41.2 metres grading 1.3% copper and 0.42% gold; and 31 metres grading 1% copper and 0.26 g/t gold.
Three kilometres of strike is untested.
READ: Silver City Minerals receives drill results from Copper Blow, suspected larger system nearby
Silver City owns 75% of the project in a contributing joint venture.
The remaining 25% stake is owned by Rasp mine and sulphate concentrator operator CBH Resources Ltd which has its operations in Broken Hill.
READ: Silver City Minerals’ soil survey reveals extensive mineralised system at Copper Blow
IOCG deposits in cratonic rocks in the Gawler and Curnamona provinces near Silver City’s Copper Blow project in far west NSW.
Silver City has previously reported resource assessment and drilling will continue at the main Copper Blow prospect.
The company plans to study the viability and effects of toll-treating high-grade mineralisation at treatment plants in Broken Hill.
Silver City spent $468,000 on its activities in the October 2018 financial quarter, ending the fiscal quarter with $1.171 million cash and cash equivalents.