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Elementos Completes A$2.3m Underwritten Rights Issue

Elementos (ASX: ELT) has successfully completed its pro-rata, non-renounceable rights issue, raising A$2.3 million to advance geophysics and drilling at the company's Tamaya copper project in Chile.

Demonstrating the strong support received, 93.6% of the total new shares and new options will be issued to eligible shareholders, including the sub underwriter, Andes Investors, an entity associated with James Calaway, a director of the company.

Underwriter, Patersons Securities, will be issued the balance of shares.

Additionally, under the terms of the underwriting and sub-underwriting agreements, 26.2 million new shares and 13.1 million new options are required to be taken up by the underwriter, Patersons Securities.

This includes 22 million new shares and 11 million new options that will be taken up by Andes Investors.

Elementos is focused on advancing its Tamaya Project in Chile, where the company recently discovered more high grade copper over significant widths from channel sampling, including 10.4 metres at 2.35% copper.

Tamaya represents the best opportunity for success in the short term thanks to the high grade copper project's position in a major Chilean copper belt, close to major mines, deposits and support infrastructure.

The project has been designated an iron oxide copper gold (IOCG) style deposit by a geological consultant.

A 5,000 metre diamond drilling program has been planned to test the different structures, the mineralised wallrocks and other styles of mineralisation that have been identified at surface throughout the project area.

The drilling is expected to intersect significant widths of moderate-grade copper mineralisation in the enveloping wallrocks, similar to the results encountered during this surface sampling program.

It may also intersect high grade mineralisation within the broader structures, similar to that mined underground and in historic waste.

Drill targets have been finalised and planning is on track for drill mobilisation by mid-October.

Similarities to Teck's Carmen de Andocollo

Tamaya is situated within the Early Cretaceous Metallogenic Belt of central and northern Chile, close to the eastern margin of the Atacama Fault Zone.

Previous mapping has identified evidence of potential porphyry related mineralisation similar to that at Teck Resources' (NYSE: TCK) 476 million tonne Carmen de Andocollo mine, 40 kilometres to the north, and at Southern Hemisphere Mining's (ASX: SUH) 106 million tonne Llahuin deposit, 85 kilometres to the south.

Both deposits lie on the same major structural trend as Tamaya.

The metallogenic belt is host to a number of significant IOCG and porphyry deposits including; Tres Valles (Vale), El Espino (Pucobre) and Punitaqui (Glencore).

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