Antilles Gold Ltd (ASX:AAU, OTCQB:ANTMF) is raising A$3.05 million in new capital via a placement to sophisticated investors to fund work at the joint venture La Demajagua open pit gold-silver mine in southwest Cuba.
The company will issue 61 million shares at A$0.05 each with one free listed option attached to every three new shares issued.
These options may be exercised at A$0.13 each on or before April 30, 2023.
Of the funds raised, $1 million will be expended on a preliminary drilling program of the highly prospective El Pilar copper-gold porphyry deposit, and its overlying gold-copper oxide cap in central Cuba.
The balance will be applied to finalising the DFS for the proposed La Demajagua gold-silver open pit mine on the Isle of Youth in southwest Cuba.
Drilling program
Six diamond drill holes in the preliminary drilling program will go to a vertical depth of about 300 metres to determine if shallow historical drilling results for copper and gold are likely to be replicated at depth.
The surface expression of the porphyry deposit and the aeromagnetic survey undertaken by a Canadian mining company in the 1990’s indicate mineralisation could continue to a depth of >1,000 metres.
An additional 12,000-metre drilling program will be undertaken next year following ground magnetics and induced polarisation programs to optimise drill hole locations.
The preliminary drilling program will also provide an indication of the 60 to 80 metres deep oxide cap at El Pilar.
El Pilar exploration target range based on a cut-off grade of 0.4% copper equivalent at a gold price of US$1,750/oz and a copper price of US$3.50/lb.
The DFS for the proposed La Demajagua mine is expected to be completed by the end of 2022 to permit the construction of mine infrastructure to commence in early 2023.
Antilles Gold executive chairman Brian Johnson said that it was disappointing to have to raise capital at such a low share price in the currently difficult market, but it was essential to maintain the momentum of the company’s activities in Cuba, and progress to a near-term cash flow from the proposed La Demajagua gold-silver open pit mine.