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In the news
Chakana Copper (TSXV:PERU), a high-grade microcap copper stock, has closed the upsized final tranche of its non-brokered private placement for C$2,178,374.25.
Transaction details
The second and final tranche involved the issuance of 54,459,356 units priced at C$0.04. Each unit consists of one PERU common share and one common share purchase warrant. Each warrant allows for the purchase of one additional share priced at C$0.06 for two years from closing, subject to acceleration if PERU shares close above C$0.09 for any 10 consecutive trading days.
When combined with the financing’s first tranche, Chakana raised a total of C$3,000,034 through the issuance of 75,000,851 units.
All securities issued are subject to a four-month hold period expiring on May 13, 2024, in accordance with Canadian securities laws.
How Chakana will allocate the funds
The company will use the funds for a minimum of 2,400 metres of exploration drilling to advance the high-grade copper-gold-silver discovery at its Soledad Project in Peru. A small portion of the funds will also go towards general working capital and administrative purposes.
Soledad boasts 154 well-defined exploration targets, 28 of which have been tested to date, confirming that the project houses a large mineral system with strong exploration upside.
The project’s initial inferred resource estimate details 6.73 million tonnes containing 191,000 ounces of gold, 11.7 million ounces of silver, and 130 million pounds of copper.
Key financing participants
Gold Fields Limited exercised its participation right to purchase 15,449,999 units for C$618,000, which increases its stake in Chakana from 17.4 per cent to 18.4 per cent.
The exact allocation by mining luminary Rick Rule was not disclosed. Readers can listen to Rule’s recent interview with Liberty and Finance for insights into his investment in the company.
Chakana directors and officers purchased 3,585,852 units for C$143,434.09.
Management commentary
“We are excited to see such strong support in this upsized financing to fund the next exploration phase at our Soledad project in Peru. We especially appreciate additional investments by Gold Fields and Rick Rule after completing a thorough geological review of the project and its potential,” David Kelley, Chakana Copper’s president and chief executive officer, said in a statement. “The primary use of the proceeds will be to drill several untested targets on the south half of the project, including the Mega-Gold porphyry target defined by extensive anomalous gold-molybdenum in soil, pervasive phyllic and advanced argillic alteration, and strong induced polarization chargeability responses.”
Chakana Copper stock (TSXV:PERU) last traded at C$0.07 per share as of 9:50 am ET. The stock has fallen by 30 per cent year-over-year and by 82.05 per cent since 2019.
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