The offer of 54,615,001 shares priced at $0.017 each will now close on 28 May 2014 rather than 14 May 2014.
Proceeds from the entitlement offer and the earlier $300,000 placement will also bring its 'construction ready' Coburn Heavy Mineral Sands Project in Western Australia into development with a strategic partner.
Funds will also go towards working capital for operations and maintain permits and tenements through to June 2015 and as Gunson seeks the entry of, a strategic partner to assist with or take over development of the Coburn Mineral Sands Project in Western Australia.
In addition they will support the activities of Torrens Mining Limited (parent company of Terrace Mining Pty Ltd) in its effort to establish the feasibility of producing Copper, Cobalt and Silver metal from the MG14 and Windabout deposits at Mount Gunson.
Gunson aims to mine the Coburn heavy sands deposit in Western Australia, and has formally launched a farm-in with Terrace Mining to study the feasibility of producing copper, silver, and cobalt metal from shallow deposits at Mount Gunson in South Australia.
The deal with Terrace Mining will see Terrace spend $2.5 million on a bankable feasibility study for mining of the shallow open pittable MG14 and Windabout deposits excised from the joint venture Gunson has with Noranda Pacific.
A proposed flow sheet is currently being tested by Terrace that utilises cyanide to leach copper and silver. Early tests show 90% copper recovery into solution.
Dissolution of the copper and silver is the first step to produce saleable metal or metal salts at the minesite. Indications are that this route will significantly improve the value of the Mount Gunson Project.
MG14 and Windabout contain identified JORC resources of 209,680 tonnes of copper with significant cobalt and silver credits. Conceptual potential exists for a Life of Mine of up to 17 years that outputs 9,000t of copper per year plus cobalt and silver credits.
Conceptual studies indicate that the project has potential to generate annualised copper revenues of ~$76 million plus cobalt and silver credits.
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