PERTH (miningweekly.com) – Metals miner MacPhersons Resources on Monday announced that it would raise up to A$10.4-million in a share placement to fund the bankable feasibility study (BFS) of its Nimbus silver/gold/zinc project, in Western Australia.
The ASX-listed miner said a share placement would be made to sophisticated and professional investors, with the shares to be priced at 16c each.
Shareholder Orion Mine Finance has committed to subscribe for up to A$6.5-million worth of shares, with the company’s equity interest to be capped at 19.9%.
MacPhersons chairperson Ashok Parekh has also agreed to subscribe for up to A$1-million worth of shares, subject to shareholder approval.
“The continued participation of Orion Mine Finance is welcomed by the company and will assist our ongoing programme of completing the BFS,” said Parekh.
He noted that continued in-fill and mine plan extensional drilling at Nimbus was delivering positive results.
Preliminary results from the BFS, which was scheduled for completion in the September quarter, indicated that lower capital costs not only had the potential to boost margins, but could also result in the cutoff grades of the project being reduced, which, in turn, could increase reserves and grow the mine life.
Scoping studies revealed that the project would require a total capital injection of between A$58-million and A$66-million, with all-in cash costs estimated at between A$12/oz and A$16/oz silver and between A$600/oz and A$1 050/oz gold.