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Metminco in trading halt as it awaits release of capital raising news

The halt will be in place until the start of ASX trading on Monday, June 3, or when an announcement is released.
ASX sign on a building
The company has agreed to a merger with Andes Resources

Metminco Limited (ASX:MNC) is in a trading halt with a capital raising announcement imminent.

The halt will remain in place until the start of normal trading on the ASX on Monday, June 3, or when an announcement is released to the market, whichever occurs earliest.

Metminco has recently been granted exploration licences (ELs) covering the Chuscal Gold Project in Colombia.

READ: Metminco partner granted exploration licences for Chuscal Gold Project

Joint venture partner Anglo Gold Ashanti Colombia SA has signed a concession contract with the Colombian National Mining Agency (ANM) covering two areas of Chuscal.

Metminco’s executive chairman Kevin Wilson said: “The signing of concession contracts for granting of the ELs is a very important step, paving the way for drilling these priority porphyry gold targets.

“Given the transformative impact drilling success could deliver, we are very excited about the diamond drilling program scheduled to commence once the merger with Andes Resources and associated $2.3 million financing is completed, and other necessary permits and approvals are received.”

The signed concession contracts will now be registered with the ANM and the earn-period on the Chuscal JV will then begin.

READ: Metminco agrees to binding terms for merger with Andes Resources

Metminco and Andes Resources Limited have agreed to binding terms for a merger.

The two intend to combine to form a Columbian gold explorer and developer with a dominant position in the Mid-Cauca gold belt.

This merger will bring together Metminco’s advanced Miraflores Gold Project as well as Chuscal, Tesorito and other surrounding prospects with Andes’ extensive tenement holding to create a company with multiple advanced exploration assets.

Chuscal is about 1,700 metres from the proposed Miraflores plant in the Quinchia Gold Project.

Metminco plans a maiden diamond drilling program of around 2,500 metres at Chuscal to test the large outcropping porphyry gold target with epithermal gold overprint.

Securing of permits and approvals along with financing are subject to the merger with Andes, which the company aims to complete in mid-July 2019.

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