To continue to progress its Mount Remarkable copper gold project in the Mount Isa region of Northwest Queensland, Syndicated Metals (ASX:SMD) will look to raise A$3 million through the placement of 20 million shares at $0.15, to investors in the UK, Europe, Hong Kong and Australia.
Last month Syndicated discovered new zones of high grade copper-gold mineralisation including values up to 25% copper and 5.54 g/t gold, from sampling over the northern section of the Leichhardt–Prospector IOCG prospect within Mount Remarkable.
The placement consists of two tranches:
- Tranche 1: 10.6 million shares within the company’s 15% placement capacity; and
- Tranche 2: 9.4 million shares pending shareholder approval at a general meeting early in 2011.
Existing cornerstone shareholder, Korea Zinc, through its 100% owned Australian subsidiary Colwell Kennedy Australia Pty Ltd, will contribute to both tranches of the share placement, thereby maintaining its 14.9% interest in Syndicated.
Veritas Securities is the lead manager to the placement.
Syndicated will have a cash balance of $4.7 million if tranche two is approved by shareholders.