SG:Genesis Minerals to raise premium for South American gold and copper exploration
Genesis Minerals has received a significant vote of confidence from Investmet with a capital raising agreement that will support exploration of Genesis existing assets in South America.
Genesis plans to raise USD 3.1 million through a two stage capital raising comprising a placement to Investmet and nominees followed by a fully underwritten entitlement issue. Importantly, the raising will be completed at a premium to current market prices. In stage one, 18 million shares will be issued to Investmet at a price of USD 0.10 per share to raise $1.8 million.
Investmet will also be issued with 18 million free unlisted options, available in three lots of 6 million shares, exercisable at USD 0.12, USD 0.15 and USD 0.20 respectively over a total 36 month period. Additional subscriptions for a further 4 million shares and 4 million options will be accommodated as required.
Under stage two of the capital raising, Genesis will offer a fully underwritten one for 8 non renounceable pro rata entitlements issue at USD 0.10 to raise about USD 1.26 million. Funds from the capital raising will be used to advance exploration at Genesis’ Poncha and Los Opeñas Gold Projects in San Juan, Argentina, with 5,500 meter drilling program planned in the March 2012 quarter.
They will also fund exploration at the Dinamarquesa and Cerro Verde Copper and Gold Projects in northern Chile. Drilling will be carried out at Dimarquesa in the March quarter to follow up on recent encouraging results from a high grade gold vein system and a porphyry copper and gold system with results from recent drilling being interpreted.
