Finders Resources intends to use A$12 million raised in a placement to advance its operating Wetar Copper Project in Indonesia. Plans include drilling out the existing resources at Lerokis deposit and an identified target at nearby Meron.
The ASX-listed company is also planning the development of other targets on Wetar Island, including Karkopang, Kali Basar and Baru Manu with the aim of increasing mine life.
Funds will also be used to conduct a feasibility assessment of an acid plant, and gold and silver production in the baryte sands and in massive sulphide ore.
Finders also intends to increase its project interest from 72% and to restructure the existing project debt facility to reflect the closure of hedges and revised cash flows for the project after attaining steady state production levels, including prepayment of some of the project debt facility.
The placement was well supported by existing shareholders as well as new institutional and sophisticated investors.
Managing director Barry Cahill said, “The company was keen to move on to targeted investments to increase mine life and project value. The focus has been on attaining steady state production at rated plant capacity and debt reduction through operating cashflow and the closing out of our hedge book.
“Now there will be a number of initiatives in place to release the full potential of this low-cost copper cathode production project by increasing mine life and revenue streams.”
The Wetar project comprises the open pit mining and processing of the high-grade sulphide deposits at Kuning and Lerokis, which are within 3km of the coast on Wetar Island. A new 25,000 tonnes/annum SX-EW plant will lift annual production capacity to 28,000 tonnes. This facility is ramping up production to nameplate.
Opportunities for extending the mine life past the current seven years are strongly founded on exploration upside, focusing initially on the nearby satellite Meron deposit and other identified VMS copper and gold targets on the island.