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Thursday, 11 October 2012
Avrupa Minerals closes $1.2 mln increased financing
Avrupa Minerals (CVE:AVU)(FRANKFURT:8AM) says it has closed the increased $1.2 million financing it announced earlier this month, to be used for exploration at its projects in Europe.
The company said it issued 7.99 million units at 15 cents each. Each unit is made up of a common share and one share purchase warrant, with every warrant good for one additional share at a price of 25 cents for a three-year period.
Strategic investors participated in the financing, Avrupa said, including one that is part of the Sprott group of companies, while management and several other stakeholders increased their positions.
The miner said insiders participated in the offering for a total of 3.185 million units.
The new funds will be used for exploration at its mineral projects in Portugal, Kosovo and Germany.
"Our two JV projects in Portugal are progressing well," said president and CEO Paul Kuhn earlier this month.
"Our next focus will be to advance our other prospects in Portugal, Germany, and Kosovo to be able to form joint venture partnerships and further advance these programs."
Kuhn said funds will also be used to continue to generate new ideas and prospects in our core areas and elsewhere in Europe.
In September, Avrupa said it had started drilling at its Covas joint venture project in northern Portugal, a past producing tungsten project. The program at the site will include up to 2,100 metres of drilling, aimed at testing and expanding known zones of tungsten-bearing mineralization, testing new targets, as well as the previously-reported possibility of gold mineralization within the prospect area.
The project, announced in May of last year, is a joint venture between Avrupa and Blackheath Resources (CVE:BHR), a tungsten explorer focused in Portugal.
Covas is a past producer of tungsten, and historic resources on the property were estimated at 922,900 metric tonnes of 0.78% tungsten trioxide. Reported past production, between 1951 and 1974, totaled roughly 366,000 metric tonnes at 0.61% tungsten trioxide.
Aside from restarting work at Covas, Avrupa is continuing to advance the Alvalade project in the Portuguese Pyrite Belt with its joint venture partner, with a project exploration budget of US$2.5 million for 2012.
With regards to its other properties in Portugal, Kosovo and Germany, the company said the assets will be dropped if significant targets are not found.
Avrupa, which will have around 28.59 million common shares issued and outstanding after the financing is completed, said the offering still needs approval from the TSX Venture Exchange.