Horseshoe Metals (ASX: HOR) has attracted interest from Investmet Limited which has the ability to pick some small cap. winners, with the group to invest up to A$4.1 million in Horseshoe.
Why its so important to be able to secure funding from the likes of Investmet, is that the group has taken strategic positions in companies such as Northern Star Resources (ASX: NST) in recent years - which is currently trading at around $1, up from less than $0.03 two years earlier.
This highlights that Investmet has an eye for identifying potential in companies in the exploration phase, before they move to producers.
Investmet will subscribe for 10 million shares at $0.275 to raise $2.75 million, and has an option to subscribe for another 5 million shares at the same price within three months from the shareholder meeting - to make the total $4.1 million.
For general working capital prior to completion of the placement, Investmet will make available an interest free loan of $500,000 to Horseshoe, convertible to shares at $0.275.
Funds to accelerate Horseshoe Lights and Kumarina projects
The funding injection will allow for diamond and reverse circulation drilling to recommence at the Kumarina copper project, once all necessary land access approvals in place and weather conditions permit.
Highlights from the project at the Rinaldi Prospect released last month include; 13 metres at 2.7% copper from 67 metres, including 2 metres at 14.4% copper, which hosts the peak intersection of 1 metre at 16.2% copper; 28 metres at 1.8% copper from 37 metres, including 3 metres at 7.5% copper; and 3 metres at 9.9% copper.
Across at the Horseshoe Lights copper gold project, a 10,000 metre reverse circulation and diamond drilling program is planned, to test for zones of copper mineralisation north of and along strike of the existing open pit and to test a deep target below 200 metres from surface.
Neil Marston, managing director, told Proactive Investors today that after the drilling program at Horseshoe Lights, the company will look to increase the JORC Resource of 8.4 million tonnes at 1.1% copper and 0.14 grams per tonne (g/t) gold for 91,400 tonnes of copper and 36,400 ounces of gold.
Major discoveries in the area
The region in which Horseshoe is currently operating continues to emerge as a major copper district in Australia, highlighted by the fact that the massive Sandfire Resources NL's (ASX: SFR) DeGrussa Copper-Gold mine is less than 100 kilometres away.
Add to the mix the location 90 kilometres north of Ventnor Resources' (ASX: VRX) Thaduna Copper Project, which recently announced some stellar results including; 37 metres at 2.61% copper from 111 metres, including 10 metres at 7.53% copper; and 62 metres at 2.19% copper from 125 metres, including 32 metres at 3.10% copper.
Kumarina is also 35 kilometres south-west of Montezuma Mining Company's (ASX: MZM) Butcherbird Copper project.
Investmet's other ASX strategic positions
Investmet over the medium term has also taken strategic positions in Target Energy (ASX: TEX), Pegasus Metals (ASX: PUN) and most recently has agreed strategic funding proposals with Genesis Minerals (ASX: GMD) and General Mining Corporation (ASX: GMM), both currently subject to completion of due diligence and shareholder approvals.