Nzuri Copper Ltd. is poised to raise about A$6 million from a placement and convertible loan to fund the development of its majority owned Kalongwe copper-cobalt project in the Democratic Republic of the Congo.
The company said May 30 that it received binding commitments to raise about A$3.1 million from a placement of 12 million shares at 25.5 cents apiece. The shares will be issued by June 4.
In addition, Nzuri secured a convertible loan of about A$2.9 million from Tembo Capital, its largest shareholder. The loan is free of interest, is unsecured and will automatically convert to approximately 11.5 million shares of the company at the same price as the placement, subject to shareholder approval.
The company also announced a share purchase plan, under which existing shareholders will be allowed to subscribe to up to A$15,000 of new shares until June 22.
According to the statement, the proceeds from these initiatives will go toward early stage development for phase one of Kalongwe, studies to support the planned phase-two expansion for the project, a multipronged exploration campaign within Nzuri's Fold & Thrust joint venture with Ivanhoe Mines Ltd. and working capital.
