MOD Resources (ASX:MOD) is raising up $1.2 million through a one for five rights issue priced at $0.006 to fund resource extension drilling at the Mahumo Copper/Silver Project in Botswana.
The rights issue includes one free attaching option exercisable at $0.01 for every two shares subscribed.
Current Scoping Study model indicates that 40,000 tonnes per month production is achievable with an initial mine life of 4-5 years.
The upcoming drilling is designed to increase resources and extend potential mine life.
Adding interest, the company in July signed a binding memorandum of understanding with Sedgman Limited (ASX:SDM) to inject up to US$1.5 million into feasibility studies including engineering and management services.
In return, Sedgman will earn up to 10% in the Mahumo joint venture and certain rights to design, construct and operate a processing plant, subject to separate contracts.
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