St. Augustine Gold and Copper’s private placement with strategic partner and insider Queensberry Mining and Development Corp has closed. There were 145 million shares issued at a subscription price of US$0.10 per share, for proceeds of US$14.5 million.
This placement sees Queensberry increase its ownership from 21.06% of the issued and outstanding shares to 39.15%.
Funds received will be used for working capital and to further advance the King-king Copper-Gold Project. This includes acquisition of land and the discharge of obligations under the project framework agreement with Nationwide Development Corporation.
The King-king project is in Pantukan, Compostela Valley, Mindanao, and is expected to recover 3.16 billion pounds of copper and 5.43 million ounces of gold over its 25 year mine and process life. According to a preliminary feasibility study, the project has a pre-tax NPV of $2.0 billion with an IRR of 24.8%. The mineral reserve amounts to 617.9 million tonnes @ 0.30% total copper and 0.395 grams/tonne gold. www.sagcmining.com