A recently arranged private placement should give Aurex Resources (VSE) sufficient funds to complete a prefeasibility study on the Cauquenes tailings project in Chile.
The placement, arranged through a number of European and North American investors, totals two million units at 70 cents per unit. Each unit includes one share and one share-purchase warrant. Two warrants give the holder the right to purchase an additional share at 80 cents for a period of two years. The Cauquenes tailings pond was the principal tailings pond of the El Teniente underground copper mine near Santiago, Chile, until 1977. The pond, which covers a surface area of 6.4 sq. km, is estimated to contain about 377 million tonnes grading 0.28% copper and 0.019% molybdenum. A private Chilean company has the exclusive right to undertake studies to determine the commercial terms of a contract under which it can acquire the extraction and processing rights for the tailings.
Aurex, in turn, can earn a 51% interest in the project from the Chilean company by funding the studies.
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