World Copper Ltd. (TSXV: WCU) has closed the third and final tranche of its previously announced private placement, issuing an additional 10.46 million units for gross proceeds of over C$4.18 million ($3.38m).
Overall, the company has issued a total of 16.22 million units for aggregate gross proceeds of approximately C$6.49 million ($5.24m) as part of the placement.
Each unit consists of one common share of World Copper and one-half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional share of the company for a period of two years at C$0.60 per share.
Expiry of the warrants may be accelerated should the closing price of the common shares on the TSX Venture Exchange be equal to or greater than C$1.00 for a minimum of 20 consecutive trading days.
World Copper plans to use the net proceeds from the offering to advance exploration on its Escalones and Cristal properties in Chile.
Escalones is a copper porphyry project located 35 km east of El Teniente, one of the world’s largest underground copper mines. The deposit has inferred resources of 426 million tonnes at 0.367% copper.
Cristal is an underexplored region along a mineral belt comprising several major copper mines. Initial exploration work on property has indicated the potential for a buried porphyry copper deposit.
World Copper’s stock surged 11.1% by noon EDT to C$0.55 a share, taking the company’s market capitalization to C$24.7 million.