Chamwe Kaira
Koryx Copper Inc. has closed a C$46 million (about N$543 million) bought-deal private placement, issuing 18.77 million common shares at C$2.45 per share.
The offering was led by Stifel Canada with a syndicate that included Beacon Securities, Haywood Securities, Research Capital, Red Cloud Securities, Canaccord Genuity and BMO Capital Markets.
The company said the offering was oversubscribed due to strong demand from international investors.
Koryx also completed a concurrent Namibian non-brokered private placement of 2 million shares at the same price, raising C$5 million (about N$60 million).
The Namibian placement targeted institutional and retail investors and is aimed at increasing local ownership in the company.
The company will use the proceeds from both financings for mineral exploration at the Haib Copper Project, technical studies, working capital, and general corporate purposes.
President and chief executive officer Heye Daun said the company welcomed the strong interest from both international and Namibian investors and highlighted the importance of expanding Namibian shareholding in Koryx Copper.
The shares issued in Canada were sold under the listed issuer financing exemption, while sales in the United States were completed through a private placement exempt from registration under US securities laws.
The transaction remains subject to final approval by the TSX Venture Exchange.
Koryx Copper is focused on advancing its 100%-owned Haib Copper Project in Namibia and building a portfolio of copper exploration licenses in Zambia.
Haib is an advanced-stage copper and molybdenum porphyry deposit with more than 80 000 metres of drilling completed since the 1970s by companies including Falconbridge, Rio Tinto and Teck.
Ongoing studies indicate that Haib could develop into a long-life copper operation, with potential for lower operating costs and further production through methods such as heap leaching.
The deposit hosts substantial copper resources, with indicated resources estimated at 1.7 million tonnes of copper and inferred resources at nearly 950 000 tonnes.
The project also contains measurable amounts of molybdenum, which is used in steel and other industrial applications.
Haib is a porphyry-type copper deposit, a geological formation that is rare in southern Africa and one of only two known in Namibia.
Most of the copper occurs as chalcopyrite, with smaller amounts of other copper minerals. The arid environment has limited surface copper exposure, helping preserve the bulk of the resource.
Caption
Heye Daun
