SolGold Plc [SOLG-TSX, LSE], a copper-gold exploration and development company with assets in Ecuador, Solomon Islands and Australia, said Wednesday April 28 that it has raised US$73.8 million from a private placement of 206.5 million shares at a price of 25.5 pence per share.
The net proceeds are intended to finance a minimum of 40,000 metres of diamond core drilling, related core drilling, related technical services and staff expenses, and CSR (corporate social responsibility) initiative work related the company’s regional portfolio.
The company said excess cash will be used for the definitive feasibility study and work streams related to the Alpala copper-silver-gold deposit on its Cascabel Project in northern Ecuador.
SolGold shares eased 4% or $0.02 to 48 cents and trade in a 52-week range of 72 cents and 35 cents.
SolGold Plc, a company backed by BHP Billiton Ltd. [BHP-NYSE; BHPLF-OTC], which owns 14.7% of the outstanding shares, is aiming to become a major copper-gold-producer.
In keeping with that plan, Solgold is working to develop the Alpala deposit in Ecuador.
According to the technical report, the Alpala mineral resource now stands at 2.6 billion tonnes grading 0.53% copper equivalent in the measured and indicated category, contained metal content of 9.9 million tonnes of copper, 21.7 million ounces of gold and 92.2 million ounces of silver. The core of the deposit measures approximately 900 metres in height and 500 metres in diameter.
The company has said the Alpala Project team is making good progress studying potential Alpala mine plans, while addressing a number of mine development and metallurgical enhancements as well as potential upgrades. The target release date for a pre-feasibility study (PFS) is late 2021.
Given the size and geometry of the deposit, the company has said it is optimistic that the PFS will demonstrate that is amenable to underground caving mining methods.
The Cascabel Project is a porphyry copper-gold deposit located in the Imbabura province of northwestern Ecuador, which lies within the under-explored northern section of the richly endowed Andean Copper Belt.
To date, exploration activity has identified 15 potential porphyry centres at Cascabel, at Alpala Central, Alpala Northwest, Alpala Southeast, Hematite Hill, Alpala East, Alpala West, Alpala South, Moran, Trivinio, Carmen, Cristal, Aguinaga, Tandayama-America, and Parambas.