The Sydney-based explorer Silver City Minerals Ltd (ASX: SCI) which is exploring in the Broken Hill region of western New South Wales has gained a substantial new shareholder.
Silver City declared that L&M Group Ltd holds 13.25 million shares, for a 5.4% stake in the company. It joined the register through a recent placement which raised $A1.96 million ($NZ2.089 M) through a placement of 49 M shares at A4 cents per share.
L&M Group, once part of a listed NZ company has in the past two decades operated an alluvial gold mine in Otago, operated in South America and explored for oil and gas in the onshore Taranaki and for coal seam gas in south Otago and in Southland.
A principal of the company has been Christchurch-based Geoff Loudon who in his early years as a geologist helped discover the massive Lihir Island gold project in Papua New Guinea and was a principal behind Nautilus Minerals Inc, the Toronto-listed company still advancing a seafloor mining project in PNG waters.
Silver City said the extra funds will be used on a high-impact drilling programme on the Copper Blow copper project near Broken Hill. This, the company said, was a new iron-oxide copper-gold discovery, where recent drilling of the South Zone included 4 metres grading 6.1% copper, 4.23 grams/tonne gold and 7m @ 3.7% Cu and 1.07 g/t Au.
A few years ago Silver City was the only company to take up an offer of epithermal gold-silver permits in the Taupo Volcanic Belt that had been offered by New Zealand Petroleum & Minerals.
It was getting promising grass roots results and after having spent several hundreds of thousands of dollars, one iwi group told Silver City it would refuse to allow the company to continue. This was a clear signal that there needs to be firmer advocacy from Government before putting up the invitation sign.
The predicament was noted by Australian explorers.
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