Great Southern Copper Raises £1.57 Million for Chile Exploration Efforts
Great Southern Copper has raised £1.57 million to enhance its copper-gold exploration in Chile. The funding includes £1.04 million from an equity investment and a convertible loan of £522,000. The proceeds will support drilling and exploration at the Mostaza Mine, where significant preliminary results have been reported. CEO Sam Garrett expressed optimism about future developments and stakeholder updates.
Great Southern Copper PLC (LSE:GSCU) has announced that it has secured £1.57 million in new funding intended to enhance its copper-gold exploration initiatives in Chile. This financial influx comprises an equity investment of £1.04 million from a financial institution and a convertible loan of £522,000 from the shareholder Foreign Dimensions.
The acquired funds will facilitate the next phase of drilling and exploration operations at the Mostaza Mine located in Cerro Negro. This includes undertaking diamond drilling, conducting metallurgical testing, and covering landholding expenses. Following a recently concluded drilling program that yielded exceptional results from the first drill hole, the company awaits assay results from the remaining eight holes.
The equity investment was accomplished through a subscription for 36 million new ordinary shares priced at 2.9 pence per share. The convertible loan is also tagged at the same price of 2.90 pence per share, which reflects a premium over the five-day volume-weighted average price of 2.49 pence per share. Great Southern Copper aims to capitalize on its Chilean assets in response to the surging demand for copper in the market.
“This is a very exciting moment for the company and we look forward to updating the market on our progress,” stated CEO Sam Garrett. The company is optimistic about potentially significant developments in its operations and is keen to keep stakeholders informed of its advancements.
In conclusion, Great Southern Copper has successfully secured £1.57 million in new investment to bolster its exploration activities in Chile. This financial backing, comprised of both equity and a convertible loan, is set to enhance the company’s drilling initiatives and support essential operational expenses. With promising preliminary assay results and a strategic focus on Chilean copper assets, Great Southern Copper is poised for future growth as demand for copper escalates.
Original Source: www.proactiveinvestors.co.uk
