RTG Mining Inc (ASX:RTG, TSX:RTG) has received commitments to raise US$10 million (circa A$14.2 million) via a private placement to institutional and sophisticated investors.
The placement received strong institutional backing, demonstrating the considerable support for RTG’s interest in the high-grade copper/gold/magnetite Mabilo Project in the Philippines and the company’s other potential opportunities.
RTG will issue ~158.4 million Chess Depository Instruments (CDIs) to be listed on the ASX at an issue price of A$0.09 per security, representing a 25% discount to RTG’s last closing price on the ASX of A$0.12.
Mabilo moving towards start-up
RTG has a 40% interest in Mt. Labo Exploration and Development Corporation which holds the high-grade Mabilo Project.
The Mabilo Project has a current net present value (based on US$10,000/tonne copper, US$1,785/ounce gold and US$122/tonne iron) of about US$490 million.
Net proceeds of the placement will be used to assist Mt. Labo advance the Mabilo Project towards start-up and the first phase being a Direct Shipping Operation.
The funds will also provide Mt. Labo with the opportunity to undertake a three-hole drilling program focused on the porphyry target and to continue to pursue new potential business development opportunities, including the Panguna Project in the Autonomous Region of Bougainville.