- Adelaide Hills based mining company, Hillgrove Resources (HGO), has secured $10 million through a placement
- A $2 million share purchase plan (SPP) opens on Monday (September 27) under the same 5.2 cents issue price
- The company will then have about $15 million for its Kanmantoo mine development activities
- A 16km drilling program will begin next month, following copper and gold lodes underground from the exhausted open pits
- Hillgrove has entered into a binding contract with Joy Global Australia (a subsidiary of Komatsu Australia) in its efforts the further develop the project
- HGO shares are trading 11.9 per cent in the red at 5.2 cents at 1:39 pm AEST
Adelaide Hills mining company, Hillgrove Resources (HGO), has raised $10 million through a placement to new and existing institutional and sophisticated investors.
A $2M share purchase plan (SPP) will open on Monday to existing shareholders with stock at the same 5.2 cents issue price.
The raise will support a 16km drilling program which is on track to begin next month. It’s designed to shore up geological confidence before a Final Investment Decision on recommencing mining at Kanmantoo.
Kanmantoo is a series of open pit mines between Mount Barker and Murray Bridge in South Australia, mined until last year.
Managing Director Lachlan Wallace said Hillgrove Resources planned to follow copper and gold lodes that extended into the ground and the company was aiming to mine again next year.
“Drilling to date has demonstrated that the ore lodes mined in the Kanmantoo open pits continue below the base of the pits with grade, width and continuity to support underground development,” he said.
Mr Wallace today also announced Hillgrove had a binding contract with Joy Global Australia (a subsidiary of Komatsu Australia) to establish a portal, exploration decline and underground drill platforms using new equipment, a Komatsu MC51 continuous miner.
Additionally, the South Australian Government has thrown its support behind this program with a $2 million grant.
“Komatsu’s DynaCut continuous mining technology has the potential to transform underground mine development design and processes, and the team is excited to have the opportunity to apply it at Kanmantoo,” Mr Wallace said.
The company has a Market Cap of 55.28M and shares last traded at 5.3c.