Cupric Canyon Capital this week secured US$85 million of equity financing to take available funding for the proposed Khoemacau copper project in Botswana to $650 million. This development has been welcomed by shareholders of Australian contractor Ausdrill, which had a $560 million underground mining contract riding on support for the project.
ASX-listed Ausdrill (ASL) shares have been up about 27% over the past month, capitalising it at about A$1.34 billion. Ausdrill said the five-year contract for its Barminco subsidiary to develop and operate Cupric’s Zone 5 Mine, announced last month, was contingent on privately-owned Cupric locking down the big funding package to get a 3.6 million tonnes per annum mine and upgraded nearby Boseto processing plant operational. Barminco is expected to start development of Zone 5 in December this year.
“This is one of the largest contracts awarded to Barminco and a major opportunity for Ausdrill under our international growth strategy,” Ausdrill Managing Director Mark Norwell said.
“We are delighted that the funding package has successfully closed and look forward to delivering on this significant project.”