Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
CopperEx Resources (TSXV: CUEX) received a boost on Monday after the company arranged a $12.5 million loan and a separate financing to fund its exploration activities in Chile. Its shares rose 7.3% to C$0.22 apiece at market open, for a market capitalization of C$6.25 million ($4.5 million).
The loan, as agreed to by an arm’s-length party, has a term of ten years and bears a 3.5% annual interest rate. However, no interest will accrue or be paid during the first two years, and the third year will be a moratorium year during which interest will accrue but no payment will be made.
The financing is in the form of a private placement, with the company issuing 5 million units priced at C$0.20 each for gross proceeds of C$1 million. The units contain warrants that are exercisable at $0.30 per share.
The funds will be directed towards CopperEx’s portfolio of projects in Chile. Its flagship asset is Exploradora Norte, for which it holds an option to earn 65% interest and a preferred option for an additional 35% with no attached royalty.
The Exploradora Norte project hosts multiple drill-ready porphyry targets located south of Escondida, the largest copper mine in the world. It is also adjacent to a Codelco property that has an estimated resource of 190 to 280 million tonnes grading 0.40% copper.
Earlier this year, CopperEx completed its first drill program at Exploradora Norte, comprising eight drill holes for 1,279 meters of drilling centered on the Franja del Oro target, part of a 15-km-long gold enrichment zone located in the northwestern part of the 20.8-sq.-km property.
In addition to Exploradora Norte, the company also owns 100% of the Kio Buggy project, situated between BHP’s Spence and Cerro Colorado mines in northern Chile, and the La Rica properties located 45 km northwest of the Las Bambas mine in Apurimac province, Peru.
