JOHANNESBURG (miningweekly.com) ? Namibian base-metals-miner Weatherly International on Wednesday reported that it has raised ?4,45-million, or about $7-million, in funding to accelerate the company?s development plans.
The company conditionally placed 89-million shares of 0,5p a share with institutional and other investors to raise the money, which it would mainly use to accelerate work at its Tschudi and Tsumeb projects.
?I am delighted with the progress that the company is making in terms of both achieving our immediate objectives to resume copper production early next year and also positioning ourselves to deliver our long-term vision for the company. This placement provides funding that will enable us to accelerate the development of the company and has enabled us to attract new shareholders who we expect to support the company in its long-term development,? CEO Rod Webster said in a statement.
Weatherly was planning to restart its Otjihase and Matchless copper mines, collectively called the Central Operations, by the first quarter of next year.
It has already secured a $7-million loan facility from Louis Dreyfus Commodities to restart the Central Operations. It expected to receive a further $3-million from the sale of its Kombat mine by November 29 and a further $2,3-million from the sale of other real estate by the first half of next year.
This would be used for working capital purposes for the Central Operations.
The additional ?4,2-million (the net proceeds of the share placement) would, in addition to existing cash resources, be used to complete a feasibility study at the company?s Tschudi copper project by the first half of 2011.
Further, Weatherly planned to accelerate the exploration programme at Tschudi to increase the existing 43,4-million tons Joint Ore Reserves Committee-compliant resource, as well as to undertake a drilling programme at its Tsumeb West and Matchless projects to test for new orebodies adjacent to existing operations.
Weatherly also indicated that it would pursue other growth initiatives, including a tailings project at Tsumeb.
The Central Operations was expected to produce a combined 7 000 t/y of copper in concentrate by about 2012, after which production would increase to a peak of just over 9 000 t/y by 2013/14.
SBR Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
