Metminco Ltd, a mining exploration company with 72.3% stake holding in Hampton Mining Limited is seeking to raise AUD$30 million to accelerate the Los Calatos copper exploration project in Peru. The company plans to use the funds raised to ramp up the pace of its exploration activities in Peru and Chile.
Shares will be issued to institutional investors at 20 cents to broaden the Metminco share holder base and bring in strong cornerstone investors. This would help Hampton which has many exploration projects on copper with significant exposure to gold, molybdenum and zinc in South America.
The exploration projects are in various ranges from mine pre - feasibility studies to advanced exploration in some and grass roots exploration in others. Metminco is an ASX and AIM listed exploration company which released a statement on Monday outlining its future plans.
The Los Calatos copper and molybdenum porphyry deposit located in southern Peru, near and in a similar geological setting to three large existing copper-molybdenum porphyry mines. At Los Calatos, Hampton has announced estimated JORC compliant resources (at a 0.2% copper cut-off grade) of 926 million tonnes, made up of Indicated Resources of 111 million tonnes at 0.39% Cu and 380ppm Mo and Inferred Resources of 815 million tonnes at 0.37% Cu and 260ppm Mo. Hampton is currently planning to commence a 50,000 metre phase 3 drilling program.
The company statement said that funds raised in the placement will also be used to undertake a feasibility study at the Mollacas project, to advance the Vallecillo project and for working capital. Shareholder approval for the scheme will be sought at its annual general meeting.
Metminco's remaining exploration projects in Australia will be divested or relinquished.