Mithril Resources (ASX: MTH) has pulled off a major shift in focus, completing the acquisition of the Copalquin gold-silver project in Mexico, filling a rights issue shortfall, and bedding down a headquarter move from Adelaide and Melbourne.
The company announced today it had completed the acquisition of an Australian private exploration company, Sun Minerals, owner of the Mexican project. Mithril plans to leave its Australian projects in the hands of joint venture partners.
Copalquin comprises six minerals concessions over 70 square kilometres and contains 32 known historic gold and silver underground workings, including the La Soledad and El Refugio mines.
Historic drilling results have confirmed the project’s exploration potential with multiple high-grade drill intercepts including 17.77m at 45.16 grams per tonne gold and 118.2g/t silver from 30.98m below surface. Another intersection recorded was 7.9m at 6.54g/t gold and 140g/t silver.
Mithril non-executive director and company secretary Adrian Wing said the completion of the capital raising will finance aggressive exploration of Copalquin.
Diamond drilling will begin in June once all in-country workers, contractors and equipment are assembled at the project site.
“It has been a pleasure to engage with the Sun Minerals team during the acquisition process and their 50-plus years of operating experience in Mexico, together with significant experience and success developing gold-silver projects in Australia and overseas will be invaluable as we advance Copalquin,” Mr Wing said.
Shortfall from rights issue placed
In April, Mithril conducted a capital raising by way of a non-renounceable rights issue offer at $0.005 per new share, with a minimum raising of $1.5 million.
The maximum number of new shares was set at 490,389,211. The shortfall totalled 80,059,950 shares.
Mithril has now placed that shortfall and all subscription funds have been received.
Mr Dudley Leitch has been appointed to the board on the nomination of Sun Minerals. Mr Leitch is a geologist and mining entrepreneur with 40 years’ experience in the industry.
Sun shareholders received 673.85 million Mithril shares in return for all the company’s issued capital.
Australian projects being advanced by partners
Mithril will now focus on Copalquin and has previously announced its Australian projects would be sole funded and financed by venture partners.
In its most recent quarterly, Mithril said Great Boulder had drilled a nickel sulphide target and Carnavale carried out geophysical surveying and surface geochemical sampling over a number of nickel sulphide targets.
Mithril also entered into a heads of agreement with a private company that can earn up to 80% of its Billy Hills zinc project.