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Metminco raising $1 million ahead of proposed merger with Andes Resources

The merger of Metminco and Andes will create a Colombian gold business with a deep pool of highly prospective exploration assets.

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New funds will provide Metminco with the working capital to progress the transaction

Metminco Limited (ASX:MNC) has received firm commitments for the issue of unsecured convertible notes to raise up to $1 million.

The company expects funds to be received by Friday, March 22, 2019.

Use of the funds will include funding Metminco’s working capital requirements and progressing the proposed merger with Andes Resources Limited.

READ: Metminco to merge with Andes Resources to consolidate advanced exploration assets in Colombia

The funds will go towards satisfying the proposed $4 million capital raising Metminco intends to undertake, in conjunction with Andes, as part of the proposed merger.

Metminco executive chairman Kevin Wilso said: “We have been overwhelmed with positive feedback from a large number of our major shareholders and a number of new investors who share our enthusiasm for the proposed merger with Andes announced 13th March 2019.

“The merger of Metminco and Andes will create a Colombian gold business with a much deeper pool of highly prospective exploration assets in a much sought-after region in the Mid-Cauca Gold and Copper-Gold Belt.

Andes’ exploration ground and Metminco’s ground in the Mid-Cauca Gold Belt

“This region has yielded multiple multi-million ounce gold and gold-copper deposits, so we are very excited by the prospect of combining a plethora of large targets within this richly endowed gold belt.

“The funding support received was important to provide Metminco with the working capital it needs to progress the transaction, and also allow for some planned geophysical and geochemical test work to refine our targeting ahead of planned drilling at the Chuscal Project post completion of the merger.”

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Price: 0.078 AUD

ASX:MNC
Market: ASX
Market Cap: $12.99 m
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