Candente Copper Corp. (TSX: DNT) has announced it will carry out a non-brokered private placement of 8.8 million common shares priced at C$0.125 each to raise gross proceeds of C$1.1 million.
The financing is to be subscribed for equally by Nascent Exploration, a wholly owned subsidiary of Fortescue Metals Group, and Lind Global Fund II, an institutional investment fund managed by The Lind Partners.
Fortescue previously acquired a strategic interest in the copper junior in May 2020, when it increased its holding from 9.72% to 19.92% through the purchase of 27.5 million shares.
Proceeds of the private placement will be used by Candente to advance its 100% owned Cañariaco project in northern Peru, including drilling and community work.
“We are very pleased to have both Fortescue and Lind supporting Candente Copper and the Cañariaco project to unlock value for shareholders,” Candente CEO Joanne Freeze stated in a news release.
“Upon completion of the private placement, we will be well financed to complete an updated Preliminary Economic Assessment (PEA), which will better define opportunities with potential to lower initial capital expenditures, operational costs and enhance our environmental, social and governance practices,” she added.
The Cañariaco project, which comprises the Cañariaco Norte porphyry copper deposit as well as the Cañariaco Sur deposit and Quebrada Verde prospect, is located within a prolific trend of producing mines in the Peruvian Andes region.
Drilling at Cañariaco Norte since 2004 has defined 7.5 billion pounds of measured and indicated copper resources, plus 1.4 billion pounds inferred. The two nearby porphyry targets offer expansion potential.
Shares of Candente Copper surged 13.0% by midday Tuesday following news of the financial backings from Fortescue and Lind. The copper explorer has a market capitalization of approximately C$33.4 million.