In a move supporting further confidence in the metals industry, Aeon Metals will float a prospect to new and existing investors to raise A$30 million via an institutional placement aimed at improving its leases including those in north west Queensland.
The company describes itself as having a lease over one of Australia’s biggest undeveloped copper-cobalt projects in the north-west, the Walford Creek project.
The proceeds from the Institutional Placement will be used to::
• Expanded drill program for 2018
– Engage at least three drilling rigs next year at the Walford Creek project to drill at least 30,000 metres, utilising the established geological model, to advance the known mineralisation to development status as well as to test the 22 kms of potential strike on the Company’s 100 per cent owned tenements.
• Develop a bankable feasibility study
– Enable bankable feasibility study work to continue and broaden
• Strengthen balance sheet
– The balance of the funding will be available to pay down the vendor debt owed to the OCP Asia (Hong Kong) Limited Group and thereby position the Walford Creek Project for development financing.
The institutional placement was significantly over-subscribed with strong demand from existing shareholders, as well as high quality new long-term institutional investors, said Aeon Metals’ CEO and Managing Director, Hamish Collins.
“This broad institutional support recognises the value of Aeon Metals’ growth strategy so far and the world class potential of our Walford Creek project.
“The funding will allow Aeon Metals to conduct the largest drill program ever conducted at the Walford Creek project, as well as strengthen the balance sheet. These will open new opportunities as it moves to develop this world class copper-cobalt project.”
The Institutional Placement will comprise an issue of 107,200,000 new fully paid ordinary shares at an issue price of A$0.28
Settlement of the institutional placement is expected to occur Wednesday on 20 December 2017, with new shares expected to be allotted and commence trading on or around 21 December 2017.