Metminco Ltd. is raising up to A$5.3 million to accelerate exploration at its Quinchia gold-silver-copper property in Colombia, with drilling planned at the Tesorito target in April and exploration expected to start at the Chuscal target later in the year.
The company said March 5 that it is undertaking a 7-for-2 renounceable rights issue targeting A$5.1 million and a private placement targeting A$190,000, both priced at 1 cent per share and with Patersons Securities Ltd. acting as lead manager.
The rights issue will include a free attaching option for every three shares taken up, exercisable at 1.3 cents per share for two years. The placement will comprise 19 million shares and will also include a free attaching option for every three new shares subscribed.
The rights issue is scheduled to close March 29, with the placement expected to be settled March 9.
Metminco also outlined plans to appoint a new board and executive team upon completion of the rights issue, with Kevin Wilson to be appointed as executive chairman and additional changes pending.
The new management team will look to sell noncore assets in Chile, where the company holds the Mollacas copper-gold property, the polymetallic Vallecillo property and the early stage Loica copper-molybdenum property.
In addition, the company will issue 9,876,512 options to Redfield Asset Management Pty. Ltd. to retire a convertible note, subject to the success of the rights issue, with the options to have the same terms as those included in the rights issue.
