RMG Limited (ASX:RMG) will raise $2,800,000 in stages; undertake a 1:33 consolidation of its share capital and acquire 100% of the Tuina copper project in Chile.
It has firm commitments to raise the full $2,800,000 by issuing 1,866,666,667 shares to a range of existing and new investors at $0.0015 per share plus one free option for every 2 shares placed.
The placement will be completed in two stages with the first raising $420,000.
The balance of the placement of 1,586,666,667 shares and options are subject to shareholder approval.
Move to 100% of Tuina copper silver project
RMG will look to acquire 100% ownership of the project in northern Chile, up from the current 75% ownership.
It would also take on an associated debt owing to the JV (approx US$1.7m), in part consideration.
Consideration will be fully paid shares to Chile Metals which would take that company to a circa 25% shareholding of RMG's issued capital.
The funding will allow RMG to commence work programs at Tuina including drilling of copper targets, IP programs, development of potential near term production opportunities and continued exploration of the Tuina district.Tuina is not without promise with RMG having turned up surface rock chip grades of up to 15g/t gold, 4% copper and 104g/t silver discovered at a new copper-gold mineralised zone, “La Teca Anomaly C”.
Which is interesting as the La Teca Anomaly C looks to potentially represent a totally new discovery of copper-gold mineralisation with characteristics similar to Chilean IOCG deposits.
