Copper Search to raise $2m for winter drilling at Peake project
Copper Search (ASX: CUS) has received commitments to raise $2 million through a private placement for a winter drilling program at its Peake project in South Australia.
The company will issue 20m fully paid ordinary shares at $0.10 each to sophisticated, professional and institutional investors.
Participants in the placement will also receive an unquoted option to acquire one share for every two shares issued at an exercise price of $0.15, with an expiration date of 2027.
Copper Search directors intend to subscribe for $130,000 of shares on the same terms, subject to shareholder approval.
GBA Capital has been appointed lead manager to the placement and will receive 3m options as part consideration.
Diamond drilling program
Proceeds from the raising will be used for a six-week diamond drilling program at the Douglas Creek and Paradise Dam prospects to test for large-scale copper deposits.
The program has been budgeted at $800,000 and is expected to commence next week.
Funds will also be directed towards regional exploration of the Peake project, including an assessment of gold prospectivity at the Mt Denison claim.
Large-scale deposits
The Peake project is located in the under-explored northeast Gawler Craton area considered prospective for large-scale deposits.
Douglas Creek is a large-scale, shallow and classic iron oxide copper gold-style (IOCG) coincident “magnetics and gravity” anomaly recently cleared for drilling after consultation with the local traditional owners.
It is positioned on the Karari Shear Zone, which has known IOCG mineralisation with a similar geophysical signature to the east.
The prospect’s magnetic susceptibility in a vertical pipe-like shape is believed to support a potential magnetite breccia body typical of IOCG-style deposits.
Paradise Dam prospect
The Paradise Dam site is defined by a strong chargeability anomaly derived from structural analysis and an induced polarisation survey completed in January.
It is estimated to be at least 3 kilometres in strike length.
Douglas Creek and Paradise Dam are located north of Olympic Dam, Prominent Hill and Carapateena, highlighting Peake’s potential to hold a major deposit.