Syndicated Metals SPP to allow company to continue copper, gold exploration near Mt Isa

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 (WST) on 20 January 2012.


Cash Boost

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