Faraday Copper (TSX:FDY) has raised C$100 million ($102.97 million) through a non-brokered private placement to fund exploration at the company’s copper projects in Arizona, US.
The company issued 23.81 million shares at C$4.20 each in this placement.
CFO Graham Richardson says the company is pleased to retain continued support from existing shareholders, including the Lundin Family Trust.
“Additionally, I am delighted to welcome BHP (ASX:BHP) as a strategic shareholder to Faraday,” Richardson says.
As reported by Mining.com.au, the placement was intended to provide BHP with shares equivalent to 30% interest in the company.
BHP has also been granted customary investor rights, so long as the shareholder maintains a minimum shareholding requirement. The shareholder will also subscribe for 30% of any Faraday equity raise, up to a maximum of US$20 million over a 24-month period following the execution of the letter of intent.
“The funds from this private placement will enable us to rapidly advance our study of the potential for development of the combined Copper Creek and San Manuel projects as we seek to bring additional US copper supply online and provide responsible economic development to Pinal County.”
Faraday orchestrated a non-binding letter of intent with BHP’s subsidiary to acquire the San Manuel Project in Arizona, as reported.
Comprising the San Manuel and Kalamazoo deposits, the San Manuel Mine operates as an underground block cave and open-pit mine, generating more than 4.5 million tonnes of copper between 1955 and 1999.
Faraday Copper is a mineral explorer focused primarily on its flagship Copper Creek Project in Arizona. Located in Pinal County, Arizona, Copper Creek is a 3km-long porphyry copper deposit.
Write to Maddison Elliott at Mining.com.au
Images: Faraday Copper
