NZURI RAISES $6M TO ADVANCE KALONGWE COPPER-COBALT PROJECT, EXPANSION STUDIES AND ONGOING EXPLORATION
Major shareholders Tembo Capital and Huayou Cobalt continue their strong support of Nzuri as cornerstone investors in the raising – with all shareholders also able to participate via an SPP
- $6.0M raised in placement and convertible loan
- $3.1M to be raised via institutional share placement at $0.255 per share.
- Supportreceived from majorshareholder Tembo Capital through an interest-free, unsecured loan of $2.9M, convertible at the same issue price as the placement.
- The convertible loan, which is subject to shareholder approval, will allow Tembo to maintain its 48.89% interest in the Company.
- Major shareholder Huayou Cobalt has continued its support by participating in the share placement to maintain its interest at 14.76%.
- In addition, eligible shareholders are invited to participate in the raising via a Share Purchase Plan (SPP).
- All proceeds will further strengthen Nzuri’s balance sheet and working capital position, ensuring it is in a strong position to progress:
- Ongoing optimisation and early-stage development work including Front-End Engineering and Design (FEED) for the Stage 1 Kalongwe Project;
- SX-EW testwork program and studies to support the future Stage 2 expansion;
- The Company’s ongoing multi-pronged exploration campaign.
Nzuri Copper Limited (Nzuri or the Company; ASX: NZC) is pleased to announce that it has successfully raised a total of $6 million through a strongly supported capital raising underpinned by its major shareholders and other institutional investors.
The proceeds will be used to progress ongoing early-stage development work and engineering for the Company’s flagship 85%-owned Kalongwe Copper-Cobalt Project in the DRC, fund the SX-EW testwork program for the planned Stage 2 expansion and continue its multi-pronged copper-cobalt exploration program.
Placement and Convertible Loan
Nzuri has received binding commitments to raise approximately $3.07 million through a share placement comprising approximately 12 million shares at an issue price of $0.255 per share (Placement).
t is intended that the shares to be issued pursuant to the Placement will be issued on or about 4 June 2018, pursuant to the Company's existing placement capacity under ASX Listing Rule 7.1.
In conjunction with the Placement, the Company's largest shareholder, Tembo Capital (comprised of Tembo Capital Mining Fund LP and Ndovu Capital VI B.V), has agreed to advance the Company a loan of approximately $2.93 million, on an interest-free and unsecured basis (Converting Loan).
The Converting Loan will automatically convert to approximately 11.5 million shares at the same issue price as the Placement, subject to the receipt of shareholder approval. If not approved, the Converting Loan will become immediately repayable. The Company intends to hold a general meeting in early July to approve this conversion. Conversion of the Converting Loan will maintain Tembo Capital's existing interest in the Company's shares of 48.89%.
Quarterly Report March 2018
Kalongwe Copper-Cobalt Project
- Substantially completed Feasibility Study update (completed post reporting period per ASX announcement 16th April 2018)
- Awarded and substantially completed Kalongwe Stage 2 preliminary economic assessment (completed post reporting period per ASX announcement 16th April 2018)
- Recommenced site capital works program
- Awarded and commenced Kalongwe Stage 2 Testwork Program
Fold and Thrust Belt Exploration JV with Ivanhoe (FTBJV)
- Final Results from the 2017 program received.
- 20.2m @ 1.85% Cu including 7.5m @ 2.39% Cu in DKAL_DD124 at Monwezi 2
- 8m @ 0.2% Co from 71m; and 8.6m @ 0.17% Co from 103m in DMON7_DD001 at Monwezi 7
- Drilling recommenced late in the quarter (announced at the beginning of Q2 2018) • Trenching at Kalongwe SW and Monwezi 2 ongoing
- Results from DKAL_17TR001 include:
- 10m @ 1.28% Co
- 6m @ 0.72% Co
- 2018 drill program planning and budget approved
- Tom Woolrych commenced 1/3/18
- Nzuri completed earn-in requirements and has an entitlement to an 80% interest in the Fold & Thrust Belt Joint Venture (FTBJV) from its joint venture partner Ivanhoe Mines (TSX: IVN)
- General meeting of shareholders held on 25 January 2018
- Completion of Huayou’s Tranche 2 investment and appointment of director
- Corporate presentation at 121 conference in South Africa.
- Issue and expiry of options and legal claims update
NZURI AWARDS KEYENGINEERING AND DESIGNCONTRACT FOR
KALONGWE COPPER-COBALT DMS PROJECT
Front End Engineering and Design (FEED) work to facilitate a rapid transition to project construction
- Front End Engineering and Design (FEED)contract for theKalongwe Stage 1 (“K1”) Dense Media Separation (DMS) plant awarded to leading Australian engineering firm Lycopodium Minerals.
- The FEED contract will include detailed project design and equipment package evaluations to the point of placing orders, to facilitate a rapid project build following funding and board approval.
- FEEDworks will alsoenable clear scopedefinition for theappointment of anEngineering- Procurement-Construction (EPC) contractor for the DMS plant.
- Lycopodium is also completing the Stage 2 economic assessment for potential SX-EW processing at Kalongwe, whichis expected tobe finalised laterthis month. Outcomesfrom this studywill be incorporated into the FEED program for the initial DMS circuit.
Nzuri Copper Limited(ASX: NZC) (Nzurior the Company)is pleased toadvise that ithas taken another important steptowards development ofits flagship 85%-ownedKalongwe Copper-Cobalt Projectin the Democratic Republic of Congo (DRC) with the award of a key contract to undertake Front End Engineering and Design (FEED) for the proposed Stage 1 Dense Media Separation (DMS) project.
The contract hasbeen awarded toleading Australian engineeringfirm Lycopodium MineralsPty Ltd (“Lycopodium”), which has been closely involved with the Kalongwe Project since early 2017.
Lycopodium completed the Stage 1 DMS Definitive Feasibility Study (DFS) in October 2017 and is currently undertaking the Stage 2 economic assessment for potential leaching/SX-EW (Solvent Extraction – Electro- Winning) processing at Kalongwe, which is well advanced and due for completion in April 2018.
The FEED contract will encompass process engineering, procurement and commercial/legal services for the Kalongwe DMS plant, including:
- Crusher, DMS plant and conveyor design specifications, requests for quotes and tender evaluations;
- Complete camp design;
- Site-wide bulk site earthworks design and specifications; and
- Early works project management and controls.
NZURI ANNOUNCES 2018 EXPLORATION PROGRAM AS DRILLING
COMMENCES AT NEW HIGH-GRADE COBALT TARGET
$4M exploration budget approved for 2018 with multiple near-mine and regional targets to be systematically tested; Nzuri completes its expenditure to earn-in to 80% of the Fold & Thrust Belt Joint Venture (FTBJV)
- $4M budget approved for copper-cobalt exploration in CY2018 with ~7,250m of RC and diamond drilling planned across several priority near-mine and regional targets
- Drilling has resumed for the 2018 field season, initially testing an exciting new high-grade cobalt target identified just 800m from the Kalongwe copper-cobalt deposit where recent trenching has returned high-grade cobalt results (DKAL_17TR001) including: -
- 10m @ 1.28% Co
- 6m @ 0.72% Co
- Drilling is scheduled to commence in April at the Monwezi 2 target, where initial drilling last year highlighted the potential to delineate satellite resources for Kalongwe, followed by the Monwezi cobalt target. The program will then move on to test a series of high-potential regional targets.
- Highly experienced geologist Tom Woolrych appointed as Exploration Manager
- Nzuri has now completed its earn-in requirements and has an entitlement to an 80% interest in the Fold & Thrust Belt Joint Venture (FTBJV) from its joint venture partner Ivanhoe Mines (TSX: IVN)
Nzuri CEO Mark Arnesen said the Company’s 2018 field season is now underway following board approval for the 12-month exploration budget which would see it build on the strong foundations laid by its exploration team in 2017.
“This is an exciting time for Nzuri as the new field season in the DRC gears up and drilling gets underway across a range of prospects. We are currently drill testing a newly-identified prospect with high cobalt grades from surface trenching just 800m from the Kalongwe open pit, in an area previously thought to have been sterilised. The rigs will then move to the nearby Monwezi area, to drill out the zone of shallow copper mineralisation identified late last year at Monwezi 2 and further test the high-grade cobalt mineralisation at Monwezi 7. At both locations there is excellent potential to define additional satellite resources.”
“We also have plenty of unfinished business regionally. We have a suite of promising regional targets including Kasangasi, Kambundji, Mulonda Funda, Mamba and Mutwa – some of which have been identified or reinforced using the data generated by the extensive regional airborne radiometric survey flown towards the end of last year.
“Shareholders can look forward to strong and continuous news-flow as this comprehensive program advances. In this regard, we are pleased to announce the appointment of highly experienced geologist Tom Woolrych as our Exploration Manager to oversee its implementation – which comes as we achieve another key milestone, attaining 80 per cent ownership in the FTBJV.”