Chase raises $3 million for Taysan copper-gold project

With more than $3 million in the bank after a recently completed public unit offering, Chase Resource (VSE) can now concentrate on bringing its Taysan copper-gold project in the Philippines through to feasibility.

The offering consisted of a total of 1.495 million units at $2.38 each for net proceeds after commissions of about $3.3 million.

The units include a share plus a warrant giving the holder the right to purchase an additional share at $2.38 in the first year, increasing to $3.13 per share in the second year.

The issue boosts the company’s shares outstanding to about 6.6 million before dilution.

Chase has an option to acquire a 59.9% interest in Taysan Copper, the Philippine company which owns the Taysan copper-gold property. Chase has already paid the vendors 1.8 million treasury shares of the company, and in order to fully exercise its purchase option, must make a cash payment of almost US$2.13 million by May 10, 1993, or US$2.9 million by May 10, 1994. Ian Rozier, president of Chase, said the company should have a drilling program under way by the end of September at the latest.

The program, to total about 16,000 ft. initially, is designed to both upgrade reserves to a proven category and to outline an initial block of higher-grade material for a starter pit.

Proven and probable reserves are estimated at 370 million tons grading 0.31% copper and 0.009 oz. gold using a 0.2% copper cutoff grade.

Consultants Fluor Daniel Wright Engineers recently estimated the capital cost would be about US$252.6 million, US$151.3 million of which would represent Chase’s share.

A study by Fluor late last year projected operating costs for the mine and mill at about US40 cents per lb. copper and US$159 per oz. of gold.