Great Southern Copper PLC has secured £1.57 million in funding to boost copper-gold exploration in Chile. This includes a £1.04 million equity investment and a £522,000 convertible loan. The funds will support drilling and testing at the Mostaza Mine, following positive initial assay results.
Great Southern Copper PLC (LSE:GSCU) has successfully secured £1.57 million in new funding aimed at enhancing its copper-gold exploration initiatives in Chile. This funding comprises a £1.04 million equity investment from an institutional investor and a £522,000 convertible loan from shareholder Foreign Dimensions. The capital will facilitate the next stage of drilling and exploration activities at the Mostaza Mine, Cerro Negro, which includes diamond drilling, metallurgical tests, and land holding expenses.
The current fundraising follows a recently completed drilling campaign that yielded “outstanding” assay results from the initial drill hole, with results from the other eight holes still awaited. The equity investment was obtained through a subscription for 36 million new ordinary shares priced at 2.9 pence per share, identical to the pricing for the convertible loan. This fundraising price indicates a premium over the five-day volume-weighted average price of 2.49 pence.
Great Southern Copper remains committed to exploring the significant potential of its assets in Chile amidst rising demand for copper. In relation to this investment, CEO Sam Garrett remarked, “This is a very exciting moment for the company and we look forward to updating the market on our progress.”
In summary, Great Southern Copper PLC has raised £1.57 million to advance its exploration efforts in Chile, particularly at the Mostaza Mine. The funding supports important drilling and testing work, following a successful initial drilling campaign. With an increasing demand for copper, the company continues to focus on unlocking the potential of its Chilean assets.
Original Source: www.proactiveinvestors.co.uk
