Solis Minerals (ASX:SLM) has secured firm commitments to raise $4.5 million via a placement of CHESS Depositary Interests (CDIs) as part of its drilling program in Peru.
Under the placement, participants can purchase CDIs over common shares at $0.085 per new share, along with a one-for-two accompanying unlisted option exercisable at $0.16 within two years.
Euroz Hartleys and GBA Capital are acting as joint lead managers to the placement.
Solis Minerals, which has a market capitalisation of $8.78 million, says its directors will also commit to investing $205,000 as part of the second tranche, subject to shareholder approval.
The funds will be used for ongoing work including drilling at the Ilo Este and Chancho Al Palo copper targets, as well as geochemical, geophysical, and permitting work at the Cinto Project to enable drilling in the second half of this year.
Solis will also use the funds for regional exploration work to conduct drilling at its other projects, including the Chocolate and Canyon projects.
Newly appointed CEO Mitch Thomas says Solis has established a landholding across nearly 70,000 hectares in the prolific Coastal Copper Belt of Peru, with exploration work to date identifying a pipeline of prospective copper targets.
“We are delighted to receive such strong support for the placement demonstrating the recognised quality of Solis Minerals’ drill-ready targets in the copper-rich region of southern Peru,” Thomas says.
“The company is now in a strong financial position ahead of drilling across our priority copper drill targets in Peru, commencing at Ilo Este and Chancho al Palo, where remaining approvals required to commence drilling are expected imminently.”
The Ilo Este Project is a large copper porphyry system with coincident gold, silver, and molybdenum located within southern Peru’s coastal copper belt.
Solis Minerals is focused on exploring for copper in South America via its portfolio of projects covering 65,100 hectares.
Write to Aaliyah Rogan at Mining.com.au
Images: Solis Minerals
