MOD Resources is seeking to boost its coffers to the tune of $18 million to accelerate exploration activities in the Kalahari Copper Belt, Botswana.
Ashanti Capital and Blue Ocean Equities were joint lead managers to a $12 million oversubscribed share placement of 255.3 million MOD shares at 4.7c per share to institutions and sophisticated investors.
The placement will be followed by a fully underwritten rights issue to raise $6.3 million to existing shareholders.
The majority of funds raised will be applied to a major expansion of exploration activities along the T3 Dome, T20 Dome and across the company’s wider 12,600 square kilometres of regional holdings.
The company is well funded to complete the T3 Pit feasibility study and conduct a major expansion to the exploration campaign with numerous identified drill ready targets across our vast regional licence holding,” MOD managing director Julian Hanna said.
The exploration complements its current drilling underway designed to advance T3 Pit extension, T3 Underground, T1 Underground projects and test the T-Rex exploration target.
Eight drill rigs are operating at T3 and T1 and this is expected to increase to test other targets.
Starting early in the June quarter, MOD plans to begin drilling of high priority targets identified within the extensive T3 Dome area and subsequently in the T20 Dome, 100km to the west.
The drilling coincides with an improved understanding of the geology and potential of the Kalahari Copper Belt, and the successful application of airborne EM to generate new targets over large areas.
Shares in MOD were trading at 4.9c on Tuesday afternoon.