Strong Progress on T3 Copper Project as MOD Strengthens Balance Sheet
MOD Resources Ltd. (ASX/LSE: MOD) (“MOD” or “the Company”) is pleased to release its fourth quarter report for the period ended 31 December 2018.
· Completed transaction for 100% ownership of T3 Copper Project
· T3 Feasibility Study on track for completion end Q1 2019
· Operating cost efficiencies identified for 3Mtpa process plant project
· Submitted draft T3 Environmental and Social Impact Assessment
· 18 key prospecting licences extended for additional two years
· Continued strong exploration results near T3 Copper Project
· MOD commenced trading on the London Stock Exchange
· $5.0M cash as at 31 December 2018, subsequently raised $15M capital
· Received non-binding, indicative proposal for 100% of MOD shares
MOD’s Managing Director, Julian Hanna said, “2018 was a transformational year for the Company. More specifically during the fourth quarter MOD took significant steps towards achieving its goal of becoming a copper developer within a highly prospective, emerging copper district. An important part of this process was completion of the acquisition of the remaining 30% of the T3 Copper Project as well as the extension of 18 key exploration licences for an additional two years. These accomplishments provide MOD with funding flexibility and security of tenure while demonstrating commitment to both the Project and to the Ghanzi District.”
“Subsequent to a busy 2018, MOD now has sufficient funding and significantly improved access to international debt and equity to take the 100% MOD owned T3 Copper Project towards development and production. MOD’s focus has not changed. The Company remains on schedule to provide an ore reserve update and complete the T3 Copper Project Feasibility Study by the end of the first quarter, followed by a decision to mine targeted during the first half of 2019.”
During the fourth quarter, the Company made substantial progress on the T3 Copper Project Feasibility Study, including submission of the draft Environmental and Social Impact Assessment to the Department of Environmental Affairs.
Furthermore, the Company completed metallurgical and engineering test work programs required for the design of the process plant. Results identified opportunities to reduce operating costs through lower power consumption and lower reagent requirements.
Exploration continued across selected priority drill targets, returning good grades and widths of copper mineralisation notably at the A4 Dome, only 8 kilometres from the T3 Copper Project. Initial drilling at the T23 Exploration Project area, 100 kilometres west of the T3 Copper Project was also successful in intersecting disseminated copper mineralisation at shallow depth, to be followed up during 2019.
Subsequent to the end of the quarter, the Company announced a capital raising of $15 million through a combination of a share placement and a rights issue. The Company also received an unsolicited, non-binding, indicative, conditional proposal from Sandfire Resources NL (ASX: SFR) equivalent to $0.38 per share for 100% of MOD shares, which the Board believes undervalues MOD’s assets.
OVERVIEW
During the fourth quarter, MOD was active at four key projects being the T3 Open Pit, T3 Underground, T3 Expansion Project and the T20 Exploration Project.
Notably, the Company completed a number of significant steps associated with the advancement of the T3 Copper Project, including:
· Finalised 100% acquisition of the T3 Copper Project;
· Submitted the draft Environmental and Social Impact Assessment (“ESIA”) to the Department of Environmental Affairs (“DEA”);
· Made major progress on the Feasibility Study which is on track for completion at the end of the first quarter of 2019
· Received two-year extensions for 18 key MOD prospecting licenses, including the T3 Copper Project;
· Progressed T3 Copper Project funding discussions and raised $15 million to support T3 activities.
Additionally, during 2018, the Company completed a total of 148 drill holes, including 41 drilled during the fourth quarter across selected priority targets (Table 1).
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