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Excelsior raises US$30mln after it closes second tranche of financing to advance Gunnison project

Last updated: 13:41 22 Jan 2018 EST, First published: 08:41 22 Jan 2018 EST

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Gunnison is a copper project

Copper project developer Excelsior Mining Corp (TSE: MIN, FSE: 3XS, OTCQX: EXMGF) says it brought in around US$30mln afer closing the second tranche of its  previously announced financing.

The second tranche was subscribed for by an affiliate of Greenstone Resources LP and saw the group issue over 16.4mln shares at C$1 each for over C$16.4mln gross (around US$12.8mln).

The first tranche, closed last month, brought in around C$22.16mln (US$17.2mln).

"This financing secures a significant amount of funding that allows us to continue advancing our Gunnison Copper Project towards production," said Stephen Twyerould, the president and chief executive.

"It is the fourth consecutive financing by Greenstone, which represents a significant endorsement of the Project and management team, by one of the most respected investment funds in the industry."

Greenstone is a private equity fund specialising in the mining and metals sector.

The team has more than 80 years' experience in the sector covering all aspects of mining project development.

Excelsior is positioned to become the newest and one of the lowest-cost copper producers in North America.

Total production from Gunnison is expected to exceed 2.1bln pounds of copper over a 24 year mine life at a total all-in sustaining cash cost of just US$1.23 per pound.

At current copper prices this would leave Excelsior with remarkable margin on its production, and potential for billions of dollars in cumulative cash flow.

A feasibility study has projected an after-tax NPV (net present value) of US$ 807 million and IRR (internal rate of return) of 40% using a US$2.75 per pound copper price and a 7.5% discount rate.

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