Great Southern Copper has garnered £1.57 million in new investment to enhance copper-gold exploration in Chile. The funding consists of a £1.04 million equity investment and a £522,000 convertible loan. It will support drilling and exploration at the Mostaza Mine following encouraging assay results from initial drilling efforts.
Great Southern Copper PLC (LSE:GSCU) has successfully acquired £1.57 million in new investment to enhance its copper-gold exploration initiatives in Chile. This funding includes a £1.04 million equity investment from an institutional source and a £522,000 convertible loan provided by the shareholder, Foreign Dimensions. These proceeds will facilitate the next phase of drilling and exploration at the Mostaza Mine, Cerro Negro, which encompasses diamond drilling, metallurgical test work, and land holding costs.
The recent funding achievement follows a completed drill program that produced an ‘outstanding’ assay result from its initial drill hole, with results for the remaining eight holes still awaited. The equity investment was achieved through a subscription for 36 million new ordinary shares priced at 2.9 pence each, while the convertible loan mirrors this share price. The fundraising total reflects a premium over the five-day volume-weighted average price of 2.49 pence.
Given the increasing global demand for copper, Great Southern Copper is dedicated to unlocking the potential of its assets in Chile. “This is a very exciting moment for the company, and we look forward to updating the market on our progress,” stated CEO Sam Garrett. This sentiment underscores the company’s optimism as it embarks on its next exploration phase.
In conclusion, Great Southern Copper has secured £1.57 million in funding to advance its exploration efforts in Chile, primarily at the Mostaza Mine. With plans for extensive drilling and metallurgical testing, the company demonstrates a commitment to capitalizing on the growing demand for copper. Moreover, the support from institutional investors and shareholders highlights the confidence in the company’s potential for future success.
Original Source: www.proactiveinvestors.co.uk
