Nobel Resources Corp. [NBLC-TSXV] shares were active Wednesday after the company announced its plans for the next phase of drilling at its Algarrobo copper project in Chile’s Atacama Desert.
The project is situated in a world class mining district that host’s Lundin Mining Corp.’s [LUN-TSX; LUMI-Sweden] Candelaria mine and is located 25 kilometres from the Port of Caldera on the Pacific Ocean.
The company it hopes to generate funding for exploration by raising up to $5 million from a marketed offering and concurrent private placements.
Nobel shares advanced on the news, rising 3.8% or $0.02 to 54 cents on volume of 861,610. The shares are trading in a 52-week range of 77 cents and 31 cents.
Nobel has the right to acquire a 100% interest in the Algarrobo property, a potential iron oxide copper gold-style (IOCG) high grade copper property. Nobel can acquire the interest by making stages payments of US$12 million over five years.
A final additional payment of US$3 million is due upon completion of permitting and financing for a major operation, including on-site processing plant.
The 6,161-hectare land package remains underexplored, but the company says there is ample evidence of mineralization due to extensive mine workings on the property.
Past production is estimated at 800,000 tonnes at 12% copper. “The project area has been subject to artisanal mining for decades, which demonstrates the presence of high-grade copper mineralization extending over at least five kilometres of strike length in numerous mineralized structures exposed in mine openings in the northeast part of the project area.
The company has also identified a second mineralized trend (the Gloria Trend) in the southern part of the property.
On Wednesday, the company said it is planning a drill campaign to test five large targets consisting of magnetic and coincident IP anomalies and with associated copper mineralization identified near surface in most cases.
The campaign will consist of 40-50 diamond drill holes ranging in depth from 100 metres to approximately 500 metres for a total of 10,000 to 12,500 metres of drilling. The company expects to be coring by September 10, 2021.
Meanwhile, Nobel said it has struck a deal with an underwriting syndicate that is expected to raise $3.5 million from an offering of units priced at 45 cents per unit. Each unit consists of one common share in the capital of the company and one half of one common share purchase warrant.
Each warrant will entitle the holder to buy one common share for 60 cents for 36 months after the offering closes.
The company also plans to undertake, concurrently with the offering, a non-brokered private placement of units on the same terms, raising an additional $1.5 million.