Curis Resources (TSE:CUV) says it has closed the C$6 million non-brokered financing it announced earlier this week for its Florence copper project in Arizona, putting it one step closer to bringing the mine to production.
The company said late Tuesday it issued 6.8 million shares at a price of 88 Canadian cents each.
The placement was divided in equal portions to two "unrelated subscribers": Sino-Canada Natural Resources Fund I and Sino Canada Zheshang Mining Investment Limited.
The new funds provide the company with additional resources to advance the Florence project through the final stage of permitting, for the first phase of development.
The first phase, or phase 1, will involve the construction, operation and closure of a 24-well in-situ copper recovery operation at the project. Before it starts phase 1 operations, however, the company is waiting on the approval from the Environmental Protection Agency for an underground injection control permit for the test facility.
The company has also recently seen certain legal obstacles removed from its pathway to development, including a lawsuit last month that had challenged the operational permit for the project.
The Florence project has a long history, having been advanced to a prefeasibility study level and attaining full project permits when it was owned by BHP Copper in the late 1990s, but Curis has been working to amend and update these operational permits, with the aim of starting copper production at a phase 1 production test facility late this year.
Using a base case 70 percent copper recovery rate, and a copper price of $2.75 per pound, the internal rate of return of the Florence copper project was projected at 29 per cent.
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