Laconia Resources (ASX: LCR) is looking to raise up to $1.4 million to pursue finalisation of Community Access agreements prior to planned drilling at its flagship Rasuhuilca Gold-Silver Project in Peru.
The company plans to raise the funds through an entitlement share issue of 91,585,297 shares at $0.015 each to raise $1.37 million and the placement of 45.8 million options at $0.001 each to raise $45,793.
The share issue includes one free attaching option for every two shares subscribed for. This is exercisable at $0.06 on or before 30 September 2018.
This is the same terms as the options issued under the placement.
"Despite the challenging financial market conditions it is pleasing to announce the capital raising which is aimed at rewarding supportive shareholders as well as welcoming some new security holders," managing director Ian Stuart said.
"The Company has delivered a significant additional asset with the signing of the Huaco Cucho Option agreement"
Stuart added the raising would lead to the conclusion of long-term sustainable Community Access agreements, the remaining item needed to formally obtain drilling approvals for the project.
Funds will also be used to complete a resource update focussing on a re-modelling of the Rasuhuilca gold-silver resource and inclusion of new copper-gold-silver targets defined recently by the company.
Indian Ocean Capital Pty Ltd will act as lead manager for the capital raising.
Laconia is also carrying out a review of its current cost structures and implement certain cost saving measures including a temporary reduction of executive and non-executive remuneration.
This is being carried out in recognition of the current uncertainty in global financial markets.
Recent diamond drilling at the Fortuna Prospect at Rasuhuilca has returned results including:
- 5.75 metres at 2% copper, 0.7 grams per tonne (g/t) gold and 97.31g/t silver from 31.15 metres, including 1 metre at 7.2% copper, 2.45g/t gold and 387.38g/t silver; and
- 3.1 metres at 2.27% copper, 3.43g/t gold and 130.56g/t silver from 61.6 metres, including 0.5 metres at 12.1% copper, 19.8g/t gold and 708.75g/t silver and 0.3 metres at 2.72 % copper,
1.09g/t gold and 114.85g/t silver from 64.4 metres.
Highlights from surface channel sampling include 0.8 metres at 4.8% coppers, 3.89g/t gold and 251g/t silver and 1.4 metres at 1.8% copper, 0.67g/t gold and 51.3g/t silver, supporting Laconia's belief that the copper-gold-silver seen so far at Rasuhuilca sits as a cap over a major copper porphyry system extending throughout.
The copper in the cap, combined with knowledge of the geology, mineralisation and alteration, supports Laconia's view that the porphyry may be an "El-Indio style" gold and copper porphyry system.
Laconia had $1.2 million in cash as of 31 January 2013.
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