Metallum Resources Inc.’s [MZN-TSXV] previously announced non-brokered private placement has been oversubscribed and, subject to TSX Venture Exchange approval, has been increased to 87.37 million units at six cents each, to raise gross proceeds of up to $5,242,000. Each unit consists of one common share of the company and one warrant which will entitle the holder to purchase one additional common share at $0.14 for two years from closing.
CPS Capital Group Pty Ltd is acting as a finder in the placement.
Funds raised from the financing are intended to be used for general working capital, and to accelerate the development of the 100%-owned Superior Lake Zinc and Copper Project 200 km east of Thunder Bay, Ontario, the highest grade zinc project in North America.
The Project covers 175 km² and consists of two deposits – Winston Lake and Pick Lake. The project is a high-grade zinc and copper deposit with an NI 43-101 Indicated Resource of 2.35 Mt at 17.9% zinc, 0.8% copper, 0.4 g/t gold and 33.6 g/t silver, and Inferred Resources at 0.27 Mt at 16.2% zinc, 1.0% copper, 0.3 g/t gold and 37.2 g/t silver.
The project is close to production, with most Capex-heavy infrastructure in place. The project is currently (Spring 2022) in the Advanced Exploration phase with the permitting process to de-water underground workings underway.
The Superior Lake Zinc and Copper Project has been advanced to the feasibility stage.