Tethyan Resources announced its planning to raise up to C$1.44 mln (£890,000) through the issue of 40 mln new shares, of which 30 mln are expected to be placed in Canada by broker PowerOne, with the rest earmarked for UK investors.
Tethyan plans to use the money raised to undertake further work its Serbian assets, Suva Ruda and Gokcinica, and for general corporate purposes.
In accordance with the terms of its option and as previously announced, the company plans to commence a 2,500 meter drill program on the Suva Ruda project by October 26, 2016 and intends to complete this drill program by mid December 2016.
This will create new information for the company and allow it to plan for more extensive work next year.
AIM-listed miner Tethyan Resources’s reported “highly encouraging results” at its Serbia projects with potential for epithermal and porphyry copper, gold and polymetallic mineralisation.
Tethyan Resources completed a geological mapping and soil sampling for its Rudnitza copper-gold porphyry prospect in the Suva Ruda project, which found a coincident copper and molybdenum anomaly, which is a good indicator for porphyry mineralisation.
This resulted in defining two target areas, a southern zone of outcropping quartz stockwork which was previously drilled to shallow depths by US copper miner Phelps Dodge in 2004, and a northern zone with dimensions, which is a new target.
The company plans to start a 2500 meter drill program on the Suva Ruda project by 26 October, which will be completed by mid-December, to test the southern porphyry target for high-grade copper and gold porphyry mineralisation at depth below where drilling previously carried out by Phelps Dodge returned strong mineralisation in shallow drilling.
At the Gokcanica copper-gold project, which is 30km north of Suva Ruda, a sampling program found a number of “strong” gold anomalies, with a plan in place to define and drill the targets next spring.
Fabian Baker, chief operating officer and chief geologist, said: “The results of our initial work at Suva Ruda and Gokcanica are highly encouraging and demonstrate the potential that these projects have to host significant mineral deposits.
“Of particular interest is the consistency and strength of the molybdenum anomaly at Suva Ruda and indications of a second porphyry stock extending to the north of the Rudnitza hill.”
Shares in Tethyan Resources were up 5.26% to 2.50p at 1152 BST.
writers: digitallook
