Queensland gold and copper producer AIC Mines’ shares slumped 9% this morning after the Subiaco-based company announced a successful raising that has injected fresh capital of $57 million into its coffers.
AIC will use the funds to extend the life of the Eloise, high grade mine in North Queensland, which has been operating for 28-years and produced over 350,000 tons of copper and 180,000 ounces of gold
With copper prices surging 25% to record levels this year, AIC are understandably eager to squeeze every ounce they can out of Eloise, with institutional and sophisticated investors sharing their enthusiasm by subscribing to 110 million new shares at 52 cents per share, representing an 11.9% discount to the last closing price of 59 cents prior to the placement, a 9.3% discount to the 5-day VWAP and a 3.9% discount to the 10-day VWAP.
Eloise is an underground mine which has been in decline. AIC is striving to extend its life by expanding the processing plant and developing the Jericho deposit, located 4km to the southeast.
AIC told investors it would use the funds to construct an underground link connecting the Eloise copper mine to the Jericho deposit.
Ore is treated on site and the mine is currently producing 12,500 tons of copper and 5,000 ounces of gold per annum.
AIC was priced at 53 cents in mid-morning trade.