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Thursday, 11 October 2012
Celeste Copper to raise $0.5 mln in non-brokered financing
Celeste Copper Corp. (CVE:) plans to raise $500,000 through a non-brokered private placement financing, the Calgary-based company said Thursday.
The company announced today it would sell up to 10 million units priced at five cents each. Units consist of one share and one half share purchase warrant.
Celeste Copper, which acquired a 25 per cent stake in Cornish Minerals, an operating unit that controls the South Crofty tin project in the U.K., said warrant holders can acquire one additional share of the company for 10 cents each for a 24-month period after closing.
It is expected that management and insiders of the company will partake in the private placement financing for at least 10 per cent of the units.
Meanwhile, Celeste said strategic investor Liberty Metals and Mining Holdings, a subsidiary of Liberty Mutual Group, has the rights to take up 47 per cent of the offering, if exercised in full.
Last month, the tin and copper miner announced it would divest its remaining Chilean claims as it seeks to focus on its South Crofty mine in Cornwall, England.
Celeste said it plans to either sell the claims outright or through a joint venture.
The Celeste IV to X claims in Chile are located 70 kilometres southeast of Copiapo, Chile. They cover mining blocks totalling an area of 24 square kilometres.
The Candeleria IOCG deposit, with reported reserves of roughly 400 million tonnes, is located around 40 km from the property on the other side of the Cabeza De Vaca intrusion.
The miner noted at the time that interested parties should contact Celeste directly.
Earlier in September, the company unveiled an updated resource estimates for the Dolcoath section of the South Crofty project.
The resource estimate, which used a 0.2 per cent cut-off grade, revealed an inferred resource of 2.47 million tonnes grading 0.46% tin, 0.54% copper and 0.23% zinc.
In addition, the estimate also showed an exploration target of between 6.7 and 13.5 million tonnes with grades ranging from 1.4 to 1.8% tin, east of the Great Crosscourse at the South Crofty mine.
Further, the report defined an exploration target of around 1.25 and 2.5 million tonnes with grades ranging between 1.25 and 1.6% tin in the Dolcoath deep and Roskear areas of South Crofty.