AuTECO Minerals (ASX:AUT) has received firm commitments for $55 million at an issue price of $0.0025 per fully paid ordinary share in its now fully underwritten two-tranche share placement.
The proceeds will be used, inter alia, to fund the acquisition of the Green Bay Copper-Gold Project in Newfoundland, Canada.
The acquisition comprises an upfront consideration of $35 million in cash and $15 million in shares followed by an additional $7.5 million cash payment and $7.5 million in shares within 18 months.
AuTECO has executed an underwriting agreement with Canaccord Genuity (Australia) to fully underwrite the placement which is co-managed by Argonaut Securities, Euroz Hartleys, and Shaw and Partners.
AuTECO’s board, management, and key consultants have subscribed for some $5.1 million of the capital raising, subject to any required shareholder approval.
Subject to shareholder approval of the acquisition, founding Bellevue Gold (ASX:BGL) Managing Director Steve Parsons will be appointed AuTECO Managing Director and founding Bellevue Director Michael Naylor will be appointed Executive Director.
The placement, which will see several large Australian and overseas institutions become AuTECO shareholders, means the company is also fully funded for an aggressive exploration program…
The placement, which will see several large Australian and overseas institutions become AuTECO shareholders, means the company is also fully funded for an aggressive exploration program aimed at growing the Green Bay Resource rapidly.
AuTECO reports this accelerated resource growth program includes plans for 700m of underground exploration development and 40,000m of drilling.
As part of this strategy and subject to completion of the acquisition, drilling will start imminently at the Ming Mine within Green Bay. Drilling platforms are already available, meaning AuTECO can test key exploration targets such as the upper VMS horizons and Lower Footwall Zone extensions.
Green Bay has a ‘large’ resource of 39.2Mt at 2.1% for 811,000t of copper-equivalent, of which 68% is in the Measured and Indicated category.
The company says the project has “immense potential for resource growth”, with a host of outstanding intersections down plunge of the existing resource.
Write to Adam Orlando at Mining.com.au
Images: AuTECO Minerals
