Great Southern Copper (GSCU ) has raised £2 million via placing of 133.3 million shares at 1.5p, a discount of 6%.
The money raised will go towards ongoing exploration on Great Southern’s high-grade Mostaza copper-silver discovery in Chile, and on other selected targets on the wider Especularita project.
Directors intend to subscribe for £70,000 worth of shares.
In recent months, the company has made significant progress at Mostaza, with drilling demonstrating the continuity of high-grade copper-silver mineralisation along strike and at depth.
Exploration at the nearby Monolith target has further enhanced the potential scale of the mineralised system within the wider Cerro Negro prospect, while preliminary metallurgical test-work on high-grade Mostaza samples has delivered encouraging copper and silver recoveries using conventional flotation.
The additional funding will support the next phase of exploration, with the principal objective being to advance Mostaza towards a maiden mineral resource.
To help accomplish this, the company has planned a diamond drill programme comprising up to 5,000 metres at Mostaza and Monolith, together with up to 2,000 metres of reverse circulation drilling along the Mostaza Fault trend.
Phase II metallurgical test-work will build on the initial results by testing drill-core samples across a broader range of copper-silver grades.
In addition, the proceeds will support 1,000 metres of RC drilling at the Artemisa porphyry prospect, and provide for corporate costs and general working capital.
“This funding will allow us to build on the progress made at Mostaza and advance the discovery towards a maiden resource,” said Sam Garrett, chief executive of Great Southern Copper.
“Our drilling has demonstrated the continuity of high-grade copper-silver mineralisation, while the encouraging initial metallurgical results provide further confidence as we plan the next phase of work. The programme will focus on further drilling at Mostaza, testing the nearby Monolith target and investigating mineralisation along the Mostaza fault trend. Alongside this, further metallurgical testing will help us better understand the deposit as we continue to assess its potential. We also look forward to advancing exploration at Artemisa our exciting porphyry target, while maintaining Mostaza as our principal priority.”
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Great Southern has been making great strides on Especularita in recent months, and has already laid the groundwork on which it ought to be able to build real value. The new money will take it to the next level, in a country that’s famous for its copper production, and at a time when the copper price is hitting record highs.