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Avanco Resources Limited (ASX:AVB) released their Consolidated Financial Report for the six months ended 30 June 2015. One of the key highlights was the securing of an ~A$80 million financing package for the Antas Copper Mine in Brazil.
Avanco Resources Limited (ASX:AVB) released their Consolidated Financial Report for the six months ended 30 June 2015. One of the key highlights was the securing of an ~A$80 million financing package for the Antas Copper Mine in Brazil.
Highlights as quoted from the report:
– The Company secured an ~A$80 million financing package for the Antas Copper Mine comprising of:
- A$63.621 million financing comprising of a 15% Placement followed by an Entitlements Issue for a further A$19.94 million and A$43.68 million respectively at an issue price of $0.08 per share;
- Financing was supported by BlackRock 2 and Appian3 , with new investor Greenstone Resources 4 taking a cornerstone position; and
- US$4 million (first tranche) payment received from BlackRock, as per the Royalty Agreement 5 .
– Board authorized the start of construction to benefit from approaching dry season.
– Construction has started well~50% of build Capex committed within budget.
– A Letter of Intent (LOI) signed with mining services group for operation of the open pit.
– At the neighbouring Pedra Branca Project, 65% of Resources have been converted to Indicated Category. This resulted in the high grade JORC Resources increasing by 18% or ~70,000 tonnes of contained Copper
– In preparation for operational readiness the Board and management team have been strengthened with the appointment of: an independent Director, the Antas Mine Manager and the Chief Financial Officer-Brazil
– The Company is in the fortunate position of being debt free and financially strong. Funds on hand are expected to be adequate to see Antas into production and advance Pedra Branca studies in parallel.
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