PERTH (miningweekly.com) – ASX-listed Pacifico Minerals will raise A$12-million through a share placement and share purchase plan (SPP), allowing the company to complete a definitive feasibility study (DFS) and take a final investment decision at its Sorby Hills lead/silver/zinc project, in Western Australia.
Pacifico on Friday announced that it would raise some A$10-million through a two-tranche share placement to institutional and strategic investors, placing more than 555.5-million shares, at a price of 1.8c each, under its existing placement capacity.
The offer price represented a 12.3% discount to the five-day volume weighted average share price of Pacifico shares, and an 18.2% discount to the company’s closing price on September 15.
In addition to the share placement, Pacifico will also undertake an SPP to raise a further A$2-million, allowing shareholders to subscribe for an additional A$30 000 worth of new shares in the company.
MD Simon Noon told shareholders that the capital raise would provide the company with a significantly strengthened balance sheet that would see Pacifico fully funded until a final investment decision is made at Sorby Hills.
“With a buoyant silver market, a recently released quality prefeasibility study (PFS) on Sorby Hills, the commencement of a 5 200 m DFS drill programme, and substantial progress being made on our financing strategy in the form of confirmed support from the Northern Australian Infrastructure Fund, it is very exciting times for the company.
“Together with the funds raised from the capital raising and the quality of the investors that have participated in the placement, the company has a solid platform from which to launch into its DFS workstream and fully focus on further de-risking and adding value to the project ahead of a final investment decision in 2021.”
The recently completed PFS estimated that the project would require a capital investment of A$183-million to produce some 81 000 t/y of 62% lead/silver concentrate containing 50 000 t/y of recovered lead and 1.5-million ounces a year of recovered silver, across an initial ten-year mine life.