Cooper Metals Ltd (ASX:CPM) has raised $2.55 million, having received firm commitments to place approximately 5.67 million shares at A$0.45 per share in an oversubscribed placement to local institutions and sophisticated investors.
Shares will be issued at a 7.9% discount to the 15-day VWAP (A$0.489) and a 1.1% discount to the closing price of $A0.455 on August 4.
Use of funds
Fund raised will be used across the company's three projects including the Mt Isa East Gold Project in Queensland and the Yamarna and Gooroo projects in WA.
The funds will be primarily used to:
- accelerate drilling programs at CPM’s flagship Mt Isa Copper-Gold Project;
- acquire additional tenements in the Mt Isa region;
- undertake additional exploration activities; and
- working capital and offer costs.
RC drilling at King Solomon
Cooper Metals has started drilling at King Solomon, testing along strike and down dip of mineralisation intersected in the June maiden drilling program, where down hole intersections included:
- 17 metres @ 2.2% copper from 84 metres including 8 metres @ 4.3% copper from 84 metres; and
- 18 metres @ 1.8% copper and 0.11g/t gold from 57 metres, including 5 metres @ 5.4% copper and 0.31g/t gold.
Drilling will also test new induced polarisation (IP) anomalies, from the July IP surveys which identified significant additional gold-copper targets, down dip, adjacent to and along strike from known mineralisation at King Solomon 1, 2 and 3, suggesting a much larger mineralised system than previously indicated.
The company has planned about 20 holes for 2,000 metres of RC drilling over the next few weeks with assays reported as soon as they are available.
Cooper continues to expand its ground holding with the acquisition of EPM19125 which adjoins Cooper’s existing tenure EPM27782 within the prospective Mary Kathleen Domain.
The new tenement also provides significant exposure to the highly prospective Fountain Range Fault (and subsidiary structures) that have demonstrated large volumes of hydrothermal fluid flow and mineralisation and are currently the focus of significant exploration to the northeast of EPM19125 at Hammer Metals Ltd Ajax and Trafalgar copper-gold prospects.