Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Due to strong demand, Filo Mining (TSX: FIL) has decided to increase the previously announced private placement from C$100 million ($75m) to C$130 million ($97m), now offering more than 6.1 million common shares of the company at C$21.10 per share.
In its initial announcement Thursday, Filo revealed that both the Lundin Family Trust and BHP Group would participate in the placement, with each planning to subscribe for shares totalling C$70 million and C$30 million, respectively.
Net proceeds of the placement will be used for the exploration and development of the company’s Filo del Sol project copper-gold project in San Juan region, Argentina, and Region III in Chile.
To date, Filo has outlined an 18-km2 alteration zone at the project with an estimated resource of 3.2 billion lb. copper, 4.6 million oz. gold and 160.4 million oz. silver in the indicated category, plus 1.3 billion lb. copper, 2.1 million oz. gold and 50.3 million oz. silver in inferred.
A prefeasibility study done earlier this year gave Filo del Sol an after-tax net present value (8% discount) of $1.31 billion and an internal rate of return of 20%. The figures were calculated using metal prices of $3.65/lb copper, $1,700/oz. gold and $21/oz. silver.
Average annual production would be 145.5 million lb. of copper, 168,000 oz. of gold and 9.3 million oz. of silver over an estimated 13-year mine life.
Shares of Filo Mining shot up 1.8% following news of the upsized private placement. The company’s market capitalization totals C$2.8 billion ($2.1bn).
