Outback Metals (ASX:OUM) has raised a further $219,491 through the issue of a convertible note to South Cove Limited.
South Cove is an entity controlled by Outback founder and Executive Chairman Graham Chrisp, who already holds in excess of 150 million shares in the company
This represents the shortfall to its rights issue priced at $0.001 per share that closed earlier this month.
The company had issued 21,315,498 new shares under the rights issue along with 21,315,498 unlisted options exercisable at $0.001 and expiring 31 July 2015.
Proceeds will be used to fund the company’s continuing rights exploration activities in addition to meeting ongoing working capital requirements.
The principal amount provided by South Cove at an interest rate of 9% per annum with a maturity date of 31 July 2015. It has a conversion option of the loan and accrued interest into OUM shares at an issue price of $0.001 per share.
Outback's flagship asset is the Mt Wells tin-copper project in the Northern Territory, which holds existing resources of 971,000 tonnes of copper at 1.5%, and 737,000 tonnes of tin at 1.38% in an underground zone, with another 400,000 tonnes at 0.4% tin close to surface.
Surface exploration and data modelling indicates potentially substantial extensions of tin and copper mineralisation along strike in both directions, and possibly a larger porphyry body beneath the known deposit.
Outback's Maranboy tin project holds a resource of 725,000 tonnes at 2% tin, and its Yeuralba tungsten-gold project has rock chips grading up to 4.9% tungsten and gold-in-soil grading over 2 grams per tonne.
The company is also in discussions with parties interested in involvement with its projects and may also look at other business opportunities, both in Australia and overseas.
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