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Belararox Raises $2.5 Million Via Placement
Belararox Limited (ASX:BRX) (“Belararox” or “the Company”) is pleased to announce a placement (“Placement”) raising $2.5 million (before costs), at $0.33 per share, to fund a range of exploration activities at the Company’s Australian projects while simultaneously accelerating exploration at the highly prospective TMT project in Argentina.
- Successful share placement undertaken, with commitments to raise $2.5 million.
- Placement was strongly supported by new and existing sophisticated and professional investors.
- The new equity will help fund a range of exploration activities at the Company’s Argentine and Australian projects over the next 6-12 months.
- Belararox is focused on commencing exploration work at 11 significant porphyry and associated targets at the TMT Project in Argentina as well as pursuing the significant outcropping pegmatites reported at Bullabulling (WA) and progressing exploration work at Belara (NSW).
“The overwhelming support received by existing and new shareholders is most encouraging as we commence exploration activities at the exciting TMT Project in Argentina and progress the good work achieved at our Bullabulling and Belara / Native Bee Projects in Australia.
The Company has a pipeline of activities planned for the 2nd half of 2023 on our 3 Projects which are now funded. We expect a continuous release of news flow as we build on the successful exploration results achieved to date.”
The structure of the Placement is as follows:
i. 7.58 million fully paid ordinary shares at $0.33 per share (“Placement Shares”), representing a 16.5% discount to both the last traded price of BRX shares on 14 June 2023 and the 15-day volume weighted average price; and
ii. 3.79 million free attaching options to subscribe for fully paid ordinary shares to be issued to investors on a one-for-two basis with an exercise price of $0.66 (being a 100% premium to the Placement price) and an expiry date that is three years from their date of issue (“Placement Options”).
The Placement Shares will rank equally with, and carry the same terms as, existing shares on issue.
The Placement Shares, Placement Options and Lead Manager Options are not subject to shareholder approval and will be issued within the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. It is expected that the Placement Shares will be issued on or about 27 June 2023. The Placement Options and Lead Manager Options will be issued on or about the same date together with a prospectus or cleansing notice (as applicable) to facilitate their quotation (and on-sale) on the ASX, subject to meeting the ASX’s minimum listing requirements.
Furthermore, the attaching Placement Options are expected to provide meaningful additional capital the Company’s balance sheet, at a materially higher valuation than the Placement price, should the Company achieve further exploration success at either of its Australian or Argentinian projects.
This article includes content from Belararox Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Belararox Limited (ASX:BRX) is an Australian mineral exploration and development company focusing on its 100-percent-owned base and precious metals projects, targeting zinc, copper, gold, silver, nickel and lead resources, and aiming to be. The company aims to be a significant contributor to help meet the world’s growing demand for battery and renewable energy metals.
The Australian government is investing nearly AU$70 billion to boost renewable energy initiatives to meet its 2030 net-zero goals, which not only provides Belararox opportunity to access government funding but also allows it to benefit from a supportive policy regime.
Belara, the company’s flagship project in New South Wales, has an inferred resource estimate of 5 million tonnes of base and precious metals. Belararox also recently acquired a new asset in Argentina, which the company will soon begin exploration work on.
Belararox has completed Phase 1 drilling, confirmed historical mineralizations, and upgraded the JORC-compliant inferred resource estimate at its flagship Belara asset. The updated resource estimate resulted in a 100-percent increase in mineralized tonnes, a 65-percent increase in copper, and a newly defined 33,762 ounces of gold. The company is now moving towards Phase 2 drilling.
Bullabulling, the company’s secondary asset in Western Australia, is slated for lithium permatite exploration work to be completed by middle of 2023, with results being available by the end of the year.
In March 2023, Belararox entered a binding agreement to acquire 100 percent of the Toro-Malambo-Tambo (TMT) Base Metals and Cu-Au Porphyry project in Argentina (TMT Project) from Fomo Ventures. As part of the transaction, Belararox will enter into royalty deeds with Fomo shareholders with respect to a one-percent net smelter royalty. The TMT project is believed to be highly prospective for zinc, an in-demand clean energy metal used in processes to reduce carbon emissions.
- Belararox Limited is a mineral exploration and development company focussing on its 100-percent-owned precious and base metal assets.
- The company’s focus on battery metals creates an opportunity to gain access to funding from the Australian government, which is investing in mining projects to reach its 2030 net-zero goals.
- Belara, the company’s flagship asset, has an inferred resource of 5 million tonnes of base and precious metals, including zinc, lead, copper, silver and gold.
- Belararox Limited will soon begin the next phase of drilling at Belara.
- The company’s secondary Bullabulling project in Western Australia has a planned drilling campaign for 2023.
- Belararox’s recently acquired Toro-Malambo-Tambo (TMT) project in Argentina includes untested assets. The company inspected and reviewed key mineralised sections of historical drill core stored in trays as part of its due diligence process in acquiring the project and has verified the presence of zinc mineralisation.
- An experienced board and management team leads the company towards exploring and developing its asset portfolio with expertise throughout the mining industry.
The company’s 100-percent-owned Belara project in New South Wales covers 643 square kilometers, including two historic zinc-copper-gold mines: Belara and Native Bee. Both mines contain encouraging historical results and have been expanded upon by Belararox’s initial drill campaign. The company is now moving towards Phase 2 drilling and additional exploration.
Figure: Belara and Native Bee project and Belara structural corridor extending 20 kilometers to the south as evident on the regional geology map.
- Prolific Maiden Resource Estimate: The company recently completed its Phase 1 drilling project to confirm and expand historical results. The JORC-compliant mineral resource estimate includes 5 million tonnes of ore at:
- 3.41 percent zinc equivalent (ZnEq) at 1.82 percent zinc
- 0.33 percent copper
- 0.63percent lead
- 17.5 g/t silver
- 0.21g/t gold
- 0.85 percent ZnEq cut-off.
- Phase 2 Drilling Scheduled: Belararox has identified new drill-ready targets along an unexplored strike extension between Belara and Native Bee. Phase 2 of drilling is planned for 2023 after the wet season in the region and aims to extend the asset's potential.
- Additional Exploration Planned: Both mines on the asset contain additional opportunities to expand known resources. As a result, Belararox plans to conduct additional airborne magnetic, GAIP and gravity exploration activities to identify future targets for exploratory drilling.
Belararox’s secondary 100-percent-owned project consists of 26 exploration licenses over 48.8 square kilometers in Western Australia. The Bullabulling project is accessible via two all-weather gravel tracks developed during historical mining operations.
Figure: Prospective pegmatite target corridor – proximal to Bali Monzogranite and amphibolites
- Past-producing Asset: The past-producing asset contains mineralization that historically produced more than 3 million ounces of gold. Bullabulling was explored between the 1990s and 2010s, yet most of the asset remains underexplored.
- Belararox has located potential lithium-cesium-tantalum (LCT) mineralization on its Bullabulling tenements.
- Recent reconnaissance mapping on the Bullabulling Project has assessed gold targets and the potential for LCT pegmatites. The mapping has identified extensive quartz and pegmatite veins/sheets in the amphibolite units adjacent to the Bali Monzogranite.
- The current global focus on battery metals, has targeted attention on the greenstone belts of the Yilgarn Craton as fertile corridors for LCT pegmatites.
- The margins of the Bali Monzogranite at Bullabulling are prospective for LCT pegmatites with several significant LCT pegmatites located in close proximity to the Bullabulling tenements, including the Red Panda and Ubini deposits both located some 2 kilometers along strike from BRX tenements.
- Several pegmatites have been mapped by the Geological Survey of Western Australia (GSWA) within, and in proximity, to the Bullabulling Project.
Ongoing exploration activities planned for the Bullabulling tenements will now be widened to include assessment of both gold and LCT prospectivity.
Toro-Malambo-Tambo (TMT) Project
The TMT project in Argentina covers 32,000 hectares of highly prospective land. The asset is located in the San Juan province, one of Latin America's most attractive mining jurisdictions known for hosting multiple advanced copper-gold projects.
Figure: TMT project area in the San Juan Province of Argentina, in close proximity to world-class projects such as Filo del Sol, Josemaria, Pascua Lama and Veladero. Source: Modified from the Argentinian Geological and Mining Survey
- The TMT project is located in the Valle del Cura region within the San Juan province, in an underexplored gap between two world-class metallogenic belts, the El Indio and Maricunga belts in the Central Andes.
- The San Juan province in Argentina, one of the most attractive mining jurisdictions of Latin America, hosts several renowned high-profile advanced copper-gold porphyry projects including Filo del Sol (Lundin), Josemaria (Lundin), Altar (Aldebaran Resources), Los Azules (McEwen Mining) and El Pachon (Glencore), as well as the high-sulphidation gold-silver deposits Veladero and Pascua Llama (Barrick-Shandong).
- As part of the transaction, Condor Prospecting, an experienced exploration team based in Argentina, owned by the vendors and closely associated with prominent exploration geologist Jason Ward, will be responsible for execution of the exploration programmes of the TMT Project.
- This acquisition complements Belararox’s existing portfolio of Australian zinc-copper projects while providing a strong value proposition for shareholder value.
- As part of the company's due diligence for the acquisition, it inspected and reviewed key mineralised sections of historical drill core stored in trays verifying the presence of zinc mineralisation.
- The company has secured the approval for the project's Environmental Impact Assessment (EIA) over the Toro tenure which includes three (3) of the nine (9) recently submitted EIAs. Initial exploration, drilling, camp refurbishment, track construction and maintenance are now permitted to commence immediately.
Neil Warburton - Non-executive Chairman
Neil Warburton is a graduate of the Western Australia School of Mines with an associate degree in mining engineering. He is a fellow of the Australian Institute of Company Directors, member of the Australian Institute of Mining and Metallurgy, chairman of the Australian Mining and Prospectors Hall of Fame Foundation, councilor of the Western Australian School of Mines Alumni association, and serves as a director on several smaller private companies.
Warburton has worked in the mining industry his entire career in roles ranging from underground miner through to senior mining engineer to executive and non-executive directorships managing large mining and contracting companies. He has more than 40 years of experience in all areas of mining operations.
Over the period 2000 to 2012, Warburton held senior positions with Barminco Limited culminating in his appointment as chief executive officer from August 2007 to March 2012. During his time at Barminco, he managed the day-to-day Australian operations and coordinated the international expansion into West Africa and Egypt, establishing the company as the largest underground hard rock contractor in Australia and West Africa and more than doubling Barminco’s revenue.
Arvind Misra - Managing Director
Arvind Misra holds a Bachelor of Technology in mining engineering from the Indian Institute of Technology, Varanasi, India and a Bachelor of Computer Science from Murdoch University. Misra is an experienced mining engineer with more than 30 years of industry experience, working through small and large mining companies in Australia, Africa and Asia.
Misra’s primary expertise is in start-up of the new mining businesses in any jurisdiction, recommencement of dormant mines, mine management, feasibility studies, acquisition of assets, turnaround management, corporate restructuring, exploration project management, IPOs and stock exchange listing.
Misra served on the board of ASX-listed company India Resources Limited as managing director for nine years as well as on several unlisted boards (private limited).
Misra has worked on numerous high-profile projects for RIO Tinto, BHP Mitsubishi Alliance, Mount Isa Mines (Glencore), Anglo American (Zambia), Griffin Coal, Norseman Gold, Brandrill Limited and India Resources Limited.
Misra is a director of Aranak Pty Ltd and non-executive advisor to several mining companies, and a member of the Australasia Institute of Mining and Metallurgy.
Michelle Stokes - Non-executive Director
Michelle Stokes holds a Bachelor of Science in geology from the University of Western Australia and has completed various professional development workshops and courses. Stokes has over 35 years’ experience across mining, exploration, consulting, and the public sector. She was responsible for the development of successful mining projects in Western Australia that are still in operation today. Stokes was a key player in the team that developed the Northern Gold portfolio in the Northern Territory. She has a high level of expertise in management and operations after providing consulting services to industry and government over many decades.
She continues to consult and advise industry and governments in various aspects of the minerals industry, focussing on management and interpretation of exploration data, resource estimation and the transfer of data and knowledge to the public or internally within exploration teams. She has a very well- developed understanding of the needs and requirements of mineral explorers.
Simon Robertson - Non-executive Director
Simon Robertson is a highly regarded non-executive director and company secretary with over 15 years’ experience providing compliance, corporate governance, capital raising, strategic direction and planning and risk management advice for a number of ASX listed, public unlisted and private companies.
Prior to joining Belararox, Robertson was non-executive director of ScandiVanadium Limited (now Province Resources Limited). He has a Master of Applied Finance from Macquarie University and is a member of the Governance Institute of Australia and Chartered Accountants Australian & New Zealand.
John Traicos - Non-executive Director and Company Secretary
John Traicos is a lawyer with more than 30 years’ experience in commercial and corporate affairs in Australia and Southern Africa. Traicos has acted as company secretary and commercial manager to several Australian resource companies and has been involved in resource projects and acquisitions in Australia, Africa and Indonesia.
Traicos is currently a director of Bassari Resources Limited, Pacific Bauxite NL and Abyssinian Gold PLC and company secretary/commercial/legal manager of Abyssinian Metals Limited. He holds a Bachelor of Arts (Honors) from the University of Natal and a Bachelor of Law from the University of Rhodesia.
Dr. Greg Partington - Chief Technical Consultant
Dr. Gregor Partington is the managing director of Kenex, which is focused on creating and managing opportunities through the application of spatial and predictive modeling. He has been involved in mining and exploration in Australasia for 40 years and has experience in discovery, management and development of projects for gold, copper, silver, tin, tungsten, tantalum, lithium and PGE metals. He has successfully developed and managed several listed exploration companies, and has a proven track record of increasing shareholder value. Partington and the Kenex team have led the development of the first, and subsequent, predictive GIS-based mineral potential maps for several areas in Australia including the areas around the BelearaRox tenements in NSW and WA.