LONDON (Alliance News) - Papua Mining PLC Monday said it has issued shares at a significant discount to settle fees and to provide working capital after the company completed its drilling programme on the Mount Visi prospect in Papua New Guinea.
The mienr has issued 2.0 million shares to existing shareholders priced at 3.0 pence each and issued a further 667,667 shares at the same price to John Benseman to pay for fees provided to the company.
When the miner has previously issued shares to John Benseman it has been in relation to rent due for its offices in Papua New Guinea.
The price represents a 37% discount to the closing share price on Friday, and the 2.7 million new shares equates roughly to 3.1% of the enlarged issued share capital of the business.
Papua Mining shares were down 6.6% to 4.44 pence per share on Monday afternoon.
The issuance suggests around GBP600,000 has been raised for working capital whilst the shares issued to John Benseman suggests the fees settled amounted to GBP200,300.
In addition, Papua Mining said it has completed the five-hole drilling campaign on the Mount Visi prospect, drilling a total of 776 metres to a maximum depth of 211 metres.
Three out of the five holes encountered high temperature, potassic alteration within the core, which the company said is "classically associated" with mineralised porphyry bodies containing copper mineralisation.
Copper mineralisation was intersected in the drillcore from four of the five holes, and the company is now awaiting the copper and gold assay results.
"The recent drilling programme at the Mt Visi Prospect follows upon the very encouraging indications seen at surface in this area. Drilling has shown extensive development of high temperature potassic alteration which is indicative of proximity to mineralized porphyry deposits. The fact that this alteration is seen both at surface and at the shallow depths so far drilled, demonstrates the significant potential of this zone," said Director Hugh McCullough.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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