World Copper (TSXV: WCU) has closed the third and final tranche of its previously announced private placement, issuing an additional 10.46 million units for gross proceeds of over C$4.18 million ($3.38m).
Overall, the company has issued a total of 16.22 million units for aggregate gross proceeds of approximately C$6.49 million ($5.24m) as part of the placement.
Each unit consists of one common share of World Copper and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional share of the company for a period of two years at C$0.60 per share.
Expiry of the warrants may be accelerated should the closing price of the common shares on the TSX Venture Exchange be equal to or greater than C$1.00 for a minimum of 20 consecutive trading days.
World Copper said plans to use the net proceeds from the offering to advance exploration on its Escalones and Cristal properties in Chile.
Escalones is a copper porphyry project located 35 kms (21 miles) east of El Teniente, one of the world’s largest underground copper mines. The deposit has inferred resources of 426 million tonnes at 0.367% copper.
Cristal is an underexplored region along a mineral belt comprising several major copper mines. Initial exploration work on the property has indicated the potential for a buried porphyry copper deposit.
World Copper’s stock surged 11.1% by noon EDT to C$0.55 a share, taking the company’s market capitalization to C$24.7 million ($20m).
