MetalsTech has received commitments to raise up to AU$9.4 million in a share placement to help further develop its Sturec gold project in Slovakia.
The company issued 45,650,000 fully-paid ordinary shares at an issue price of 20.5 cents per share.
In addition, MetalsTech issued 9.756,098 ordinary shares under the conversion agreement with Minerva Investment Co. Ltd., to repay AU$2 million the company owed.
The company will use the funds raised from the placement to complete the pre-feasibility study for the Sturec gold project, carry out further planned resource and exploration drilling, environmental studies and for working capital.
MetalsTech Chairman Trever Benson said: “We are very pleased with the outcome of the placement and the support received from shareholders and new investors, which now enables the company to accelerate development of the Sturec gold project, and to covert AU$2 million of monies owed to Minerva.”
Sturec is MetalsTech’s flagship project and has historically produced over 1.5 million ounces of gold and 6.7 million ounces of silver worth more than US$2 billion at recent metal prices.
MetalsTech noted that significant exploration upside exists along strike of the main Sturec defined resource.
MetalsTech also pointed out that there is potential to significantly reduce capital expenditure and allow Sturec to produce a gold concentrate for export out of Slovakia, where it could be processed further using conventional processing for sulphide concentrates or sold.
MetalsTech’s exploration efforts are targeting a southern step out of the previous resource envelope along the high-grade plunging zone with the purpose of growing the underground resources.