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FinnAust Mining (LSE:FAM), an exploration company with an extensive and highly prospective portfolio of Finnish copper and nickel assets, had announced the readmission of its enlarged issued share capital to trading on AIM following the reverse takeover of Centurion Resources plc.
Contingent with the reverse takeover, the Company raised £3.4 million through the placing of new ordinary shares. A 1 for 10 share consolidation has also been effected and dealings in the enlarged issued share capital will commence at 8.00am today with ticker FAM.
The total number of ordinary shares in issue at Admission is 247,097,670, giving the Company a market capitalisation of approximately £12.4 million, based on the placing price of 5 pence per share. Western Areas Limited owns 167,500,000 ordinary shares in the capital of the Company representing 67.8 per cent. of the issued share capital of the Company.
Overview:
· The Company has extensive holdings in Finland covering approximately 4,710 sq km, primarily targeting Volcanogenic Massive Sulphide (‘VMS’), high-grade magmatic sulphide nickel-copper and Outokumpu type copper deposits
· FinnAust Mining’s Exploration Rights are located in a prolific geological belt, which includes the famous Outokumpu copper mine and other high-grade mines. Three high-priority target areas have been identified:
o Hammaslahti – Targeting extensions to and structural repeats of the Hammaslahti mine sequence. FinnAust Mining’s first drill campaign in 2012 intersected 3.4m @ 11.5% copper and 3 ppm gold down plunge
o Outokumpu – Focussing on the copper belt famous for its high-grade deposits. Four targets identified for immediate drill testing between, adjacent to, and along strike from the world famous Outokumpu copper mine 1908–1999 (42Mt @ 3.1% copper + credits from the whole belt)
o Enonkoski – Identified extensions and repeats of high-grade nickel-copper mineralisation discovered at the old Enonkoski mine, which included a drill intercept of 15m @ 6.9% Nickel and 2.0% Copper
· Significant investment in exploration and development of Finnish assets to date, which has confirmed the wide spread occurrence of base metal sulphides and the continuation of mineralogy along strike from producing and historically producing mines in a range of different geological settings
· High-impact 10,300m drill programme to commence imminently – follows 3 years of targeted geophysical work and initial exploratory drilling (inc 3.4m @ 11.5% copper and 3ppm gold at Hammaslahti)
· Work at Hammaslahti has commenced with a geophysical crew and drill rig already on site – plan to drill circa. 400m by end of Q4 2013
· Exploration utilises ZTEM, an innovative new airborne AFMAG (Audio-Frequency Magnetics) system – base metal mineralisation is associated with massive sulphides, which tend to act as sub-surface electrical conductors
· Finland rated number one mining destination worldwide in the Fraser Institute Global Mining Survey Results 2012/2013 – local operators include ASX listed Altona Mining Limited, which recently intercepted highs of 108 metres at 2.4% copper including, 58 metres at 4.2% copper, at its Kylylahti deposit contiguous to FinnAust Mining’s Outokumpu target
· Acquisition of Finnish assets complements current portfolio – 80% interest in the previously producing Mitterberg Copper Project in Austria
· Proven Board and management team with experience in identifying and developing resource assets
Alastair Clayton, Executive Director of FinnAust Mining, said, “FinnAust Mining plc has a highly prospective portfolio in Finland, located in one of the world’s most prolific geological belts. Primarily targeting VMS, high-grade magmatic sulphide nickel-copper and copper deposits, and following significant investment by ASX listed Western Areas, three high-priority targets of Hammaslahti, Outokumpu and Enonkoski have already been identified in a region which hosts multiple high grade mines including the world famous Outokumpu copper mine.
“Western Areas has a proven track record in acquiring and developing resource assets having identified from greenfield exploration and put into production two high grade nickel mines. They remain totally committed to the development process, underlined by their investment of a further £1.8 million and the appointment of Dan Lougher and Graham Marshall, respectively chief executive and general manager of Western Areas, to the Board.
“This is high grade, high impact exploration, as highlighted by Altona Mining Limited’s recent results from their contiguous licence at Kylylahti which returned highs of 108 metres at 2.4% copper, including 58 metres at 4.2% copper. We are in the right location and with an experienced and committed team, cash in the bank to develop the assets, a defined exploration programme and a highly prospective portfolio, I am confident that FinnAust Mining is an exciting investment opportunity.”
