Syndicated Metals (ASX: SMD) is now eyeing a potential A$1 million boost to its coffers through a share purchase plan to advance drilling on the Kalman project in northwest Queensland to define an open pittable copper-gold and molybdenum-rhenium Resource.
The share purchase plan will be offered at $0.085 per share, the same price as the recently announced placement, with existing shareholders able to apply for up to $15,000 worth of Syndicated shares.
Funds raised will also be used to drill other priority iron oxide copper-gold targets including Andy’s Hill and Yamamilla and advance the mining and environmental studies on the Mount Remarkable copper-gold deposits – Barbara, Green Zone and Blue Star.
Last month Syndicated announced it would raise $902,250 through a placement of 10.6 million shares at $0.085 per share to continue its exploration programs in the Mount Isa region.
In October the company delivered a maiden JORC Resource at the Blue Star and Green Zone deposits within its Mount Remarkable Project.
Blue Star's Inferred Resource is 177,000 tonnes at 2.31% copper and 0.27 grams per tonne (g/t) gold for 4,100 tonnes of copper and 1,520 ounces of gold, while Green Zone's Inferred Resource is 430,000 tonnes at 0.9% copper for 3,860 tonnes.
Syndicated’s 2012 program will include copper resource expansion drilling on a number of targets, Scoping Studies and Mining Lease Application for the Barbara deposit, and drilling, a new resource and Scoping Studies for the Kalman polymetallic deposit.
The share purchase plan opens on 9 December 2011 and closes at 5pm (NYSE:WST) on 20 January 2012.
The successful completion of the share purchase plan combined with the proceeds of the earlier placement will increase Syndicated’s healthy $2.3 million cash reserves at the end of the September quarter by $1.9 million.
Article originally posted at: http://www.proactiveinvestors.com.au/companies/news/23083/syndicated-metals-spp-to-allow-company-to-continue-copper-gold-exploration-near-mt-isa-23083.html