Canadian company Koryx Copper, which is developing the Haib Copper Project in Namibia, made a deal to raise C$25 million (approximately N$300 million) by selling new shares of their company.
According to a statement by Koryx chief executive Heye Daun, Stifel Canada is helping them sell these shares, and a group of other companies (called underwriters) are also involved.
The shares are being sold at C$2.45 (about N$29) per common share in Canada and the United States.
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"The company intends to use the net proceeds to advance technical studies on the Haib Copper Project and continue exploration on the property, working capital and general corporate purposes," Daun says in the statement.
He says Koryx had granted the underwriters an option to purchase or to arrange for substituted purchasers to buy up to an additional 1 530 750 common shares at the issue price on the same terms and conditions as the offering.
"The underwriters' option will be exercisable, in whole or in part, at any time up until 48 hours prior to the closing of the offering," he adds.
The offering is expected to close on or near 20 January and is subject to certain conditions including but not limited to the receipt of all necessary approvals and the acceptance of the TSX Venture Exchange.
The underwriters shall be paid a cash commission equal to 6% of the gross proceeds of the offering and compensation warrants equal to 3% of the number of common shares sold, subject to the policies of the TSX Venture Exchange and applicable securities laws.
"Each compensation warrant entitles the holder to acquire a common share of the company at a price equal to C$2.45 (about N$29) for a period of 24 months from the date of issue thereof," explains Daun.
In addition to the Haib Copper Project, Koryx is also engaged in its two copper exploration licences on the Zambian Copperbelt.
Haib is a large, advanced copper/molybdenum porphyry deposit in southern Namibia with a long history of exploration and project development by multiple operators.
"More than 80 000 metres of drilling has been conducted at Haib since the 1970s with significant exploration programmes led by companies including Falconbridge (1964), Rio Tinto (1975) and Teck (2014)," says Daun.
Extensive metallurgical testing and various technical studies have also been completed at Haib to date, he adds.
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Additional studies aimed at demonstrating that Haib is a future long-life, low-cost and low-risk open-pit sulphide flotation copper project with the potential for additional copper production from heap leaching are underway.
Mineralisation at Haib is typical of a porphyry copper deposit and it is one of only a few examples of a Palaeoproterozoic porphyry copper deposit in the world and one of only two in southern Africa - both in Namibia.
- Email: matthew@namibian.com.na
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