29Metals Shares Feasibility Study and Final Investment Decision for Gossan Valley Project

29Metals (ASX:29M) has announced a feasibility study and final investment decision for the Gossan Valley project at its Golden Grove volcanic-hosted massive sulphide mine in Western Australia.

The feasibility study is an update to the 2022 version of the document. It outlines production of 4,000 tonnes of copper and 20,000 tonnes of zinc annually at Gossan Valley over an initial mine life of seven years.

CEO James Palmer said the development of Gossan Valley is the "next logical development option" when it comes to moving forward at Golden Grove, which was first discovered in 1971.

"As the second highest grade Ore Reserve behind Xantho Extended, development of Gossan Valley optimises Golden Grove's life-of-mine production profile and enhances overall production flexibility as a relatively shallow and independent mining front," Palmer explained in the company's December 3 press release.

Gossan Valley remains open at depth, holding opportunities for future exploration and resource extension.

Located approximately 450 kilometres northeast of Perth and 250 kilometres east of Geraldton, the Golden Grove mine was acquired by EMR Capital, the largest shareholder of 29Metals, in 2017.

On the same day as it released its feasibility study and final investment decision for Gossan Valley, 29Metals launched a AU$180 million equity raising. The company said AU$112 million will be used to fully fund the project, while the remainder will be used to reduce its total senior debt by extending the maturity date until 2028.

The equity raising will be conducted at an offer price of AU$0.27 per share, which represents a 27 percent discount to 29Metals’ closing share price of AU$0.37 per share on December 2.

On Tuesday (December 10), 29Metals said it had opened the retail component of its entitlement offer. It is set to raise about AU$36.2 million, with eligible retail shareholders invited to purchase new shares at AU$0.27 each.

The retail entitlement offer is expected to close on December 19.

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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.