Mining Group (ASX: MNE) has received a major vote of confidence in the company’s Philippines based operations from Patersons Securities, which will underwrite half of the company’s $5 million pre-rata renounceable rights issue.
Mining Group intends to offer a one for one pro-rate renounceable rights issue of up to 50.2 million shares at $0.10, with Patersons underwriting to $2.5 million.
Zeff Reeves, managing director for Mining Group, commented: “The current market conditions have meant we have elected to offer an attractive discount to our shareholders in order to follow up the recent exploration success at our Comval Project.
“Recent drilling has confirmed our exploration model and, together with ground magnetic, has indicated the potential to continue to expand the mineral inventory at Comval.”
The company has also negotiated a short term loan of $500,000 with a controlled entity of Cygnet Capital – the company’s corporate advisors – to cover immediate working capital and exploration costs at Comval until the completion of the right.
Comval – a highly prospective project
Highlighting the rapid progress of Mining Group, the company only acquired the strategically well located Comval copper-gold project six months ago, but the drilling results highlight the growing potential for Tagpura/Bayag Bayag to host a significant copper orebody.
Earlier in the month at the Bayag Bayag prospect, further economic skarn style copper drill intercepts included; 32 metres at 0.61 percent copper and 0.18 grams per tonne (g/t) gold from 32.00 metres, including 11.3 metres at 1.11 percent copper and 0.16g/t gold from 50.70 metres.
Also at the prospect – porphyry style mineralisation intersected includes 5 metres at 0.44 percent copper and 0.15g/t gold from 45 metres; and 2 metres at 1.38 percent copper and 0.64g/t gold from 104 metres – within a broader low grade mineralised porphyry feeder zone.
A major plus for Comval is the strategic location in an active mining district, with four mines and a port within 70 kilometres.
The mines to the north include the Dilwalwal project (10.2Mt at 9.6g/t gold), the Medusa Mining (ASX: MML) Co-O Mine (6.3Mt at 9.6g/t gold), while to the south is the Amacan project (110Mt at 0.3 percent copper, 04.g/t gold) and the Masara/Maco project (3Mt at 5.9g/t gold).