Duke set to raise $35 million in True North deal
Duke Exploration is in the market for $35 million to be used in the buy-out of True North Copper.
QMines has made a copper gold discovery
The deal would include buying True North, which also has agreements to acquire CopperCorp and Perilya’s Mt Oxide project.
Interim chair Ian McAleese said the directors believed the deal would create a significant opportunity for Duke and True North shareholders through the creation of a much larger company with a portfolio of copper, gold and cobalt assets.
The offer is pitched at 25 cents a share to raise $35 million and an additional $5 million under a priority offer to Duke shareholders. Duke would also change its name to True North.
The Mt Oxide project alone would cost $46 million.
The prospectus said the company was expected increased demand for copper because of its use in renewable energy as well as the electrification of the transport sector.
The deal would also give the company key infrastructure including a copper concentrator, a SX plant and a copper sulphate crystallisation plant which would allow near-term cash flow at reduced capital cost.
Duke’s existing assets include the Bundarra copper project, Prairie Creek gold project and the Emerson joint venture in NSW.
