When Auteco announced its plans to rescue the Green Bay copper-gold project in Newfoundland for around A$65 million it secured commitments for $50 million for a placement at 2.5c, including $5 million from its directors.
The SPP was seeking $3 million on the same terms, but Auteco was offered $9.1 million.
With demand so high it has elected to accept to $5 million. A scale back is also required.
Parsons said the demand reflected the “immense exploration upside” at Grenn Bay and its 2.8 million ounce Pickle Crow gold project in Ontario.
The funds will cover much of the up-front purchase price, exploration at Pickle Crow and at its legacy Limestone Well vanadium project in Western Australia.
A 40,000m underground drilling campaign and development of a 700m exploration drive are near-term plans at Green Bay.
Parsons and Mike Naylor were previously at Bellevue Gold with Auteco chair Ray Shorrocks, and were instrumental of resurrecting the WA gold mine. First gold at Bellevue is imminent.
The group wants to be double or triple resources over the next two years, and become a mid-tier copper producer by the end of the decade.
The Ming deposit at Green Bay was mined by AIM-listed Rambler Metals and Mining until earlier this year and has remaining resources of 811,000 tonnes of copper equivalent, but remains open in all directions and is reportedly ripe with multiple exploration opportunities.
Auteco secured the asset, which has a replacement value of more than $250 million, as part of Rambler’s administration process after it defaulted on its loans.
