MetalsTech (ASX:MTC) to pocket $3m from Chifeng investment

• MetalsTech (MTC) receives $3 million in funding through a placement with Hong Kong-based Chifeng to support exploration at the Sturec gold deposit in Slovakia
• Chifeng will subscribe for 7.5 million shares at 40 cents per share, giving it a shareholding of roughly 9 per cent in MetalsTech
• The funding boost comes ahead of a planned update to the Sturec mineral resource estimate and a pre-feasibility study for the project
• Shares in MetalsTech are down 1.87 per cent to 52.5 cents at 12:17 pm AEDT

MetalsTech (MTC) has received $3 million in funding through a placement with Hong Kong-based Chifeng to support exploration at the Sturec gold deposit in Slovakia.

Chifeng will subscribe for 7.5 million shares at 40 cents per share, giving it a shareholding of roughly 9 per cent in MetalsTech. This follows on-market buying from Chifeng over the past month.

MetalsTech Director Gino D’Anna said the company was “delighted” that Chifeng was continuing to increase its ownership in MTC.

“Chifeng is widely considered to be the most successful gold miner in China, owing to the experience of their Chairman Mr Wang Jianhua, who, before transforming Chifeng in his role as Chairman, served as CEO of $58-billion-capped Zijin Mining and before that served as Chairman of $18-billion-capped Shandong Gold,” Mr D’Anna said.

Today’s funding boost comes ahead of a planned update to the Sturec mineral resource estimate and a pre-feasibility study for the project.

Currently, geological modelling is underway, with a significant update of the JORC resources at Sturec expected to take recent drilling and surface exploration into account.

This will feed into the PFS.

Shares in MetalsTech are down 1.87 per cent to 52.5 cents at 12:17 pm AEDT.