MOD Resources Ltd (ASX: MOD) is pleased to announce that following the major increase in the T3 resource announced 2 July 2018, a review of the planned throughput for the T3 process plant has been undertaken.
- T3 plant throughput capacity increased to 3Mtpa, a 20% increase to the PFS Base Case
- Sedgman appointed as Feasibility Study (FS) process and infrastructure engineers
- Azure Capital and Terrafranca appointed as Debt Advisers to secure debt finance for T3
- FS on schedule for completion by end of March 2019
The Feasibility Study is now based on an increase in the process plant throughput to 3Mtpa, with allowance for staged future expansion. Throughput selection was based on criteria that included the tonnes of indicated category resource, target mine life of at least 10 years and the optimal operational and financial outcome for MOD.
The Company is also pleased to announce key appointments to assist with the development and funding of the initial open pit development of the T3 Copper Project, including Sedgman Pty Ltd (‘Sedgman’), a member of CIMIC Group, for Process and Infrastructure engineering, and Azure Capital (‘Azure’) and Terrafranca Advisory Limited (‘Terrafranca’) as joint debt advisers (‘Joint Debt Advisers’).
Managing Director Julian Hanna said “We’ve had a great deal of interest already in our T3 Project, following our debut presentation at the Diggers and Dealers Conference this week. We are really pleased to report this increase in the proposed plant capacity following the recent resource upgrade.
The T3 Pit Feasibility Study remains on schedule for completion by the end of March 2019 and all key technical consultants are
He continued, “The T3 Project is located at one of many ‘domes’ identified within the 700km2 T3 Dome Complex that could, if mineable resources are discovered, utilise the proposed T3 process plant. We are continuing to fast-track exploration drilling at the nearby A4 Dome, where we announced outstanding first assay results earlier this week.”
Read: Full RNS Update Link
Read: 6th August 2018 Assays Confirm Outstanding Intersection at A4 Dome
MOD intends to seek a listing on the London Stock Exchange in Q4 2018
It is expected that the LSE Listing will take place following the completion of the Company’s transaction with Metal Tiger Plc announced on 18 July 2018, whereby MOD will consolidate 100% ownership of the T3 Copper Project and gain rights to acquire all joint venture exploration assets between the two companies in Botswana.
It is therefore anticipated that the LSE Listing process will complete and MOD shares will begin trading on
the London Stock Exchange in Q4 2018.
MOD’s Managing Director, Mr Julian Hanna said, “The decision to seek a listing on the London Stock Exchange, represents an important strategic milestone for MOD. The LSE has a long history of successful listings of companies with African mining assets and we expect the listing to raise the profile of MOD and open up access to a wider pool of investors. We look forward to building support for MOD amongst the UK and European investment community as we continue to grow the Company.”
The LSE Listing forms an important part of MOD’s strategy ahead of the raising of construction finance for the T3 Copper Project. It positions the Company for the next stage of its development by raising its international profile and facilitating the future participation of a broad spectrum of UK and European investors.
The Company has already been successful in attracting support from UK and European investors and the LSE Listing is expected to significantly broaden the investor base available to MOD to include institutional and other investors not currently able to invest through the Australian Stock Exchange (‘ASX’).
The London market has a deep understanding of African natural resources projects and it is expected there will be strong
support for the Company once dual listed.
MOD Resources’ Chairman, Mr Mark Clements, said “The Board considers the timing of the proposed LSE Listing to be right during this period of rapid activity and growth.” There are currently few opportunities on the LSE for UK and European investors seeking exposure to copper and MOD considers their T3 Project and highly prospective exploration assets present a compelling investment opportunity for the London market.
On completion of the LSE Listing, MOD believes it will be the fifth largest London listed junior copper focused company* (see Figure 1). MOD will retain its existing ASX listing as the Company’s primary listing. MOD is well funded for its current work program and is not currently planning to raise equity capital at the time of the LSE Listing.
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