Great Southern Copper PLC has raised £1.57 million for enhancing copper-gold exploration in Chile. This funding includes £1.04 million from an institutional equity investment and a £522,000 convertible loan from Foreign Dimensions. Proceeds support drilling at the Mostaza Mine following encouraging assay results from initial tests.
Great Southern Copper PLC (LSE:GSCU) has attained £1.57 million in new funding aimed at enhancing its copper-gold exploration initiatives in Chile. The financial package includes an equity investment of £1.04 million from a financial institution and a £522,000 convertible loan provided by shareholder Foreign Dimensions. These funds are designated for advancing the drilling and exploration phases at the Mostaza Mine in Cerro Negro, which will involve diamond drilling, metallurgical testing, and covering land holding costs.
This recent investment follows a successful drilling program that yielded remarkable assay results from the initial drill hole, with results from the remaining eight holes still awaited. The equity investment was achieved through a subscription for 36 million new ordinary shares priced at 2.9 pence per share, while the convertible loan also aligns with this share price. Notably, the fundraising price reflects a premium over the previous five-day volume-weighted average trading price of 2.49 pence, indicating strong investor interest.
Great Southern Copper is actively working to harness the potential of its assets in Chile amidst rising global copper demand. “This is a very exciting moment for the company, and we look forward to updating the market on our progress,” expressed CEO Sam Garrett.
In summary, Great Southern Copper has successfully secured £1.57 million in funding to bolster its exploration activities in Chile. The investment, comprising an equity stake and a convertible loan, aims to facilitate further drilling at the Mostaza Mine. This funding milestone, alongside positive initial drilling results, positions the company advantageously in an increasingly competitive market for copper extraction.
Original Source: www.proactiveinvestors.co.uk
