Capital raising to take Pacifico through to 2020 PFS
Shares in Pacifico Minerals Ltd (ASX:PMY) surged more than 10% on Monday morning after the company announced that it had raised $4.6 million, funding which will significantly progress the advancement of the company’s Sorby Hills Lead-Silver-Zinc Joint Venture Project in Western Australia.
Pacifico shares have now increased 100% in the last two months, and there could be more to come.
The company owns a 75% interest in the Joint Venture with the remaining 25% interest held by Henan Yuguang Gold & Lead Co. Ltd.
Phase II infill and expansion drilling results are imminent, and these have the potential to provide further share price momentum.
On the back of a highly successful Phase II drilling program, Pacifico will use additional available funding to commence a Phase III drilling program within the next two months.
PFS and DFS both on track for 2020
The company is now fully funded to deliver an optimised prefeasibility study by January 2020, a watershed development as the company progresses towards a decision to mine.
Pacifico will also be advancing its definitive feasibility study work program, highlighting the extensive news flow that is in the pipeline.
Discussing the significance of the capital raising, managing director, Simon Noon said, “The response to the capital raising from both new professional investors and our major shareholders has been extremely encouraging and I believe this is testament to the strong results the Sorby Hills project is consistently delivering.
“This funding will enable the company to complete an additional infill and expansion drilling program this year, just prior to the release of the optimised PFS ahead of the Definitive Feasibility Study (DFS) to be delivered next year.”
As indicated in the following six-month chart, commodity prices have been working in Pacifico’s favour, with the two key metals, silver (black line) and lead (green line), both performing well in the last six months.
While stocks leveraged to silver have been running hard, Pacifico’s exposure to lead is worth noting given that it is bucking the broader negative trends across some other base metals.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.