Koryx Copper unveils $25 million bought deal financing
Koryx Copper Inc. [KRY-TSXV] has announced details of a $25 million bought deal private placement offering. Net proceeds will be used to advance technical studies the Haib copper project in Namibia and continue exploration on the property.
The bought deal offering consists of 10.2 million common shares priced at $2.45 per share. The company said it has granted the underwriters an option to purchase up to an additional 1.53 million common shares at the issue price and on the same terms and conditions as the offering. That option can be exercised, in whole or in part, at any time up until 48 hours prior to closing.
On Wednesday, Koryx shares eased down 12% or 34 cents to $2.51 and currently trade in a 52-week range of $2.96 and 85 cents.
Koryx previously said it had assembled an experienced technical and management team who will implement the fast-tracked development of the Haib Copper Project. It said the multi-disciplinary team has worked together successfully for many years advancing Osino Resources’ Twin Hills Gold Project (recently sold to Shanjin International Gold) and aims to drive the continued advancement of Koryx assets in Namibia and Zambia.
Haib is a large and advanced copper/molybdenum porphyry deposit in southern Namibia with a long history of exploration and project development by multiple operators. Mineralization at Haib is typical of a porphyry copper deposit.
More than 70,000 metres of drilling has been conducted at Haib since the 1970s, with significant exploration programs led by Falconbridge (1964), Rio Tinto Group [RIO-NYSE] (1975) and Teck Resources Ltd. (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) (2014). The company said Teck remains a strategic and supportive shareholder.
In a press release on September 10, 2024, Koryx announced an updated resource estimate for the Haib project. It said the new estimate followed all results received from the 2024 drilling program.
Koryx said the project hosts an indicated resource of 414 million tonnes at 0.35% copper for 3,216 M lbs of copper at a 0.25% cut off. On top of that is an inferred resource of 354 million tonnes at 0.33% copper for 2,503 M lbs at 0.25% cut off.
The company said additional studies are under way aiming to demonstrate Haib as a future long-life, low-cost, low-risk open-pit sulphide flotation copper project with the potential for additional copper production from heap leaching. Mineralization at Haib is typical of a porphyry copper deposit and is one of only a few examples of a Paleoproterozoic porphyry copper deposit in the world and one of only two in southern Africa (both in Namibia). The company recently announced new drill results from the project, which is envisioned as a producer of copper concentrate via conventional crushing/milling/flotation, with the potential for additional copper production via heap leaching.
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