THE BOURSE WHISPERER: PLD Corporation (ASX: PLD) has completed its due diligence on the Admiral Bay zinc and Rocky Gully nickel-copper project and has subsequently notified Kagara (currently in liquidation), Heron Resources and Third Reef that it intends proceeding with the acquisition of the projects.
PLD described Admiral Bay is one of the largest undeveloped zinc projects in the world, saying it hosts an Inferred Mineral Resource Estimate (MRE) of 72 million tonnes at 6.7 per cent zinc equivalent (ZnEq).
Rocky Gully is located in the Fraser Range, where PLD is exploring for Nova-type nickel-copper deposits.
PLD announced it has signed agreements with two leading mining finance managers, Resource Capital Funds (RCF) and Mining Finance Fund (MFF).
The company said the deals will fund the acquisition of Admiral Bay and Rocky Gully as well as a 24 month work program, involving new technology, innovation and leadership, and ultimately feasibility studies.
A Subscription Agreement has been signed with RCF for a placement of approximately 68 million shares at one cent per share to raise just on $0.68 million.
A Term Sheet for the sale of a one per cent Net Smelter Royalty (NSR) at Admiral Bay, has also been struck for US$5 million.
MFF has signed a Confidential Term Sheet regarding two NSRs at Admiral Bay for US$2.5 million.
Total proceeds from the agreements come to $10.28 million.
“Our $10 million financing underwrites the acquisition and development plan for the projects involving new technology, innovation and leadership,” PLD Corporation managing director Matt Gauci said in the company’s announcement to the Australian Securities Exchange.
“While discussions with potential partners for Admiral Bay will continue, we are satisfied that via these agreements, owning, funding and developing the projects 100 per cent will create more value for our shareholders.”