MOD Resources has received firm commitments to advance their T3 copper project in Botswana. The funds which are through an institutional share Placement add up to US $10m. This will also include an additional US $5m fully underwritten Rights Issue to be offered to existing shareholders.
According to media reports, the majority of funds are intended to help define additional resources within the surrounding T3 expansion project area. This is besides advancing the project to production. Furthermore, following media speculation, MOD Resources announced receiving unsolicited, non-binding, indicative and conditional proposal by Sandfire Resources.
The announcement states that the proposal is to acquire 100% of the company’s shares via an all scrip transaction equivalent to US $0.38 per MOD share. The Board believes this proposal undervalues the company’s unique and extensive assets.
MOD Resources’ T3 copper project in Botswana lies within a largely under-explored, highly prospective region offering a dominant copper-belt scale opportunity. The T3 copper project was discovered in March 2016. It is also said to present the potential for a long-life, high-margin, open pit copper mine with significant exploration upside.
The company continues to progress the T3 Feasibility Study to reach a decision to mine in the first half of 2019. MOD Resources has also advanced discussions with a number of parties. This has since provided the board with confidence in the availability of a range of funding options. Said funding will go a long way towards progressing the T3 copper project into production.
Company MD Julian Hanna said that the funding from this capital raise will enable the company to progress the T3 copper project towards a development decision and conduct further drilling for additional resources.