Syndicated Metals to boost copper gold exploration near Mt Isa after $900,000 placement

Syndicated Metals (ASX: SMD) will raise A$902,250 through a placement of 10,614,706 shares at $0.085 per share to continue its exploration programs in the Mount Isa region of North West Queensland and for working capital purposes.

The Placement will be made to a range of domestic and international investors. A total of 2.23 million shares to raise $190,000 will be issued to directors of the company, subject to shareholder approval.

Russell Davis, Syndicated’s managing director, said the proceeds of the placement would allow the company to maintain the momentum of its exploration and development activities including the current drilling program at the promising Andy’s Hill copper-gold target.

Syndicated also aims to raise up to a further A$1 million through a share purchase plan (SPP) to eligible shareholders at $0.085 cents per share.  The SPP will have a record date of November 23rd 2011.

Just last month the company delivered a maiden JORC Resource at the Blue Star and Green Zone deposits within its Mount Remarkable Project in Northwest Queensland.

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 of copper.

Syndicated controls tenements covering an area of over 4,000 square kilometres in the Mount Isa region. Blue Star and Green Zone are both located within the Leichhardt joint venture tenements with Mount Isa Metals (ASX: MET), where Syndicated holds 51% and management.

Syndicated is also building a significant metal resource inventory with its interests in the Barbara copper-gold deposit and the Kalman molybdenum-rhenium-copper-gold deposit, both within 60 kilometres of existing infrastructure at the Mount Isa mining centre.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22516/syndicated-metals-to-boost-copper-gold-exploration-near-mt-isa-after-900000-placement-22516.html