daytrading oct 28 morning, page-2

64eh
Sydney - Friday - October 28: (RWE Aust Business News) - Sipa Resources (SRI) has entered into a strategic alliance with Antofagasta Minerals Perth for copper exploration in Western Australia.

The agreement includes a regional strategic exploration alliance that covers all of Western Australia, excluding all of Sipa's existing properties.

Antofagasta will provide a USD1m private placement to Sipa.

This will form part of a larger capital raising to raise a total of up to AUD7.7 million.

The placement will consist of a placement to sophisticated investors and a Share Purchase Plan (SPP) at 13c per share, a 19.9pc discount to the 5-day volume weighted share price of the company.

The strategic alliance with Antofagasta will seek to capitalise on Sipa's exploration expertise with the aim of generating greenfield copper projects in Western Australia.

Antofagasta will contribute funding of at least USD400,000 in the first year and USD800,000 annually for the subsequent two year period.

At the end of the three year period, the alliance may be extended by mutual agreement with Antofagasta funding a minimum of USD400,000 annually for as long as the agreement is in place.

The focus on copper does not prohibit the Alliance from exploring for other minerals if the opportunity arises.

In the event a property meets certain criteria it may be classified as a designated project and will be subject to terms and earn-in conditions.

Antofagasta may earn a 51pc interest in any designated project by spending an aggregate of USD1m over the first year.