Coppermoly Ltd has entered into a placement and convertible note agreement with a new investor, Jade Triumph International Ltd, to raise up to $1.5 million. The placement will result in Jade Triumph having a relevant interest in approximately 9.4% of Coppermoly’s shares.
The key features of the agreement are an upfront placement of 30 million new fully paid ordinary shares in Coppermoly to raise $300,000; and the issue of 60 million convertible notes to raise a total of $1,200,000 (before costs), in two separate tranches. The first will result in an initial upfront issue of 38.75 million convertible notes to raise $775,000 and the second will see a subsequent issue of 21.25 million convertible notes to raise $425,000, which is subject to Coppermoly first receiving shareholder approval for that issue.
Following receipt of the initial tranche funds Jade Triumph may also nominate one individual for appointment to the Coppermoly Board of Directors.
Funds raised from the placement and convertible notes will be used to fund exploration on the company’s tenements and other working capital requirements. This capital raising secures enough funding for the company to recommence its exploration plans.
The company will concentrate its immediate efforts on the most advanced project, the Mt Nakru tenement, which includes the Nakru 1 and adjacent Nakru 2 prospects where drilling in 2014 intersected high grade near-surface copper mineralization. The exploration effort will also be expanded to other targets on the Nakru tenement.
An internal review conducted in late July 2014 also produced a short list of regional targets as candidates for the company’s next field work, subject to a data review. These targets include Nakru 3, Nakru 4, Nakru 2 Northwest, Malolo Creek (all on the Nakru tenement), Mt Misusu (on the Talelumas tenement) and Pulding (on the Makmak tenement).
The extent of the exploration effort will depend on the availability of funds after executing the exploration plans on Nakru 1 and Nakru 2 prospects. The prime objective is to use these funds to best add value to Coppermoly by exploration.