Altaley Mining Corporation (TSX-V:ATLY) said it has closed the final tranche of its non-brokered private placement, raising gross proceeds of $759,296.30, and has also reported its first-quarter results.
Under the final tranche, the company issued 2,169,418 units at $0.35 each. Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one additional share at $0.55 each within 24 months from the relevant closing date, subject to an acceleration clause, the company said.
In total, the company issued 14,285,714 units at $0.35 per each for aggregate gross proceeds of $5,000,000.
READ: Altaley Mining eyeing first revenue from Tahuehueto in Mexico as mill commissioning kicks off
Total issued and outstanding common shares of the company after completion of the private placement is 277,894,422, it said, adding that a portion of the final tranche closing was purchased by an affiliate of a director of the company.
The net proceeds from the placement will be used for working capital purposes related to the ramp-up of mining and milling operations at the Tahuehueto Mine and for general working capital purposes.
1Q results posted
The Canada-based miner also released financial results for the first quarter ended March 31, 2022.
"Q1 2022 was a difficult quarter at Campo Morado where mechanical issues resulting in excessive mill downtime combined with lower recoveries, lower mill feed head grade mineralized material plus increased off-taker charges all combined to substantially reduce operating profit and increase costs during the quarter,” Ataley CEO Ralph Shearing said in a statement.
“The mechanical issues have been resolved and the mine plan is producing increased grade mill feed with recoveries of zinc back on track. In addition, the mine started copper concentrate production during mid-May which we are expecting will add an additional revenue source to the project. We anticipate a much improved second quarter," he added.
In the three months ended March 31, 2022, Campo Morado produced 9,657 tonnes of zinc concentrate grading an average of 46% zinc, 1.58 grams per ton (g/t) gold, 609 g/t silver and sold approximately 9,781 tonnes of zinc concentrate generating quarterly revenue from zinc concentrate of $12.34 million. Additionally, produced 2,379 tonnes of lead concentrate grading an average of 19% lead, 2.37% copper, 4.66 g/t gold, 647 g/t silver and sold 2,626 tonnes generating revenue from lead concentrate of $1.84 million, the company said.
Approximately 176,610 tonnes of mineralized material were mined with average grades of 3.59% zinc, 0.91% lead, 103 g/t silver, 0.83 g/t gold achieving recoveries of 70.1% in zinc, 27.7% in lead, 9.8% in gold, and 27.6% in silver.
An estimated 176,610 tonnes of mineralized material were processed through the processing plant at a C1 cash cost per lb of US$1.26.
Contact the author at jon.hopkins@proactiveinvestors.com