In order to raise funding for a feasibility study on the Bajo de la Alumbrera copper-gold property in Argentina, International Musto Exploration (VSE) recently filed a preliminary prospectus for a common share issue.
The size and pricing of the issue have not been set, although the company estimates the feasibility will cost about US$4.6 million to complete. International Musto will need an additional US$550,000 to repay bank indebtedness incurred as part of a US$1-million option payment to YMAD, an Argentine quasi-government mining body.
The company can earn a 100% interest in the property by making staged payments totalling US$5 million to YMAD, funding all the feasibility work, and arranging project financing. The property is subject to a 20% net profits interest after payback as well as an overriding 2% net smelter royalty payable to the government.
Preliminary estimates based on previous work on the property put reserves at about 337 million tonnes grading 0.53% copper and 0.70 grams per tonne gold.
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