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New World Resources (ASX:NWC) to raise $8m in share placement

ASX News, Materials
ASX:NWC      MCAP $59.64M
12 December 2022 14:44 (AEDT)

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New World Resources (NWC) has received commitments to raise $8 million to advance its Antler copper project in Arizona, US.

The company’s placement was supported by a range of institutional, sophisticated and professional investors, resulting in the issue of around 250 million new fully-paid ordinary shares at 3.2 cents per share.

Euroz Hartleys and Blue Ocean Equities were appointed to act as joint lead managers of the placement.

New World Managing Director Mike Haynes told investors the placement proceeds would be used to fund further exploration drilling to extend the Antler deposit at depth and to undertake initial drilling to test new high-priority geophysical and geochemical targets along strike from the deposit.

The funding will also be used to update a scoping study by evaluating a larger production profile in line with the recent 48 per cent increase in the resource base at the project. This will then be used to prepare mine permit applications.

“The new funds will enable us to continue to expand the Antler resource base — firstly by continuing to drill at depth below the Antler Deposit itself, where the deepest holes have recently returned assays including 27 metres at seven per cent copper-equivalent, 21.3 metres at 5.3 per cent copper-equivalent, and a spectacular intercept of 10.7 metres at 13.7 per cent copper-equivalent, and secondly by testing the high-priority targets that we have delineated along strike from the Antler Deposit that provide opportunities to discover additional VMS deposits,” Mike Haynes said.

“And with a larger resource — which now stands at 11.4 million tonnes at 4.1 per cent copper-equivalent — we’ll use some of the funds raised to immediately update the scoping study to evaluate a larger production profile, which we expect will have a very positive impact on the project’s already very-robust economics.”

Settlement of the shares is expected to take place on December 19, with the allotment scheduled for the following day.

New World Resources was down 5.88 per cent to trade at 3.2 cents at 2:29 pm AEDT.

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