Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) said it can now buy the Pegmont lead-zinc project in Australia and make a final payment, having closed the previously announced AS$3M (around C$2.8M) financing package with Nebari Holdings.
The update came as the firm also revealed it had amended the terms of a previously announced private placement to advance the project.
Vendetta says it now plans to issue up to 15 million units at C$0.10 cents a throw to raise gross proceeds of C$1.5 million.
Each unit comprises one share and one half a share purchase warrant, with each whole warrant entitling the holder to buy one company share at C$0.15 per share for two years from closing.
Immediately, following the closing of the offering, Vendetta will begin field work at the Pegmont project, it said.
The detailed geological mapping program started last year will be expanded and the company will begin a drill program consisting of resource development drilling in Zones 2, 3 and 4, and exploration drilling on newly identified structural targets.
The project lies in the Mount Isa-McArthur mineral area and is 25 kilometers (15 miles) west of the Australian miner South32’s Cannington silver-lead-zinc operation, one of the world’s largest producers of silver and lead.
Currently, it boasts an indicated resource of 5.8 million tons at 6.5% lead, 2.6% zinc and 11 grams per ton silver.
Preliminary economic assessment
A preliminary economic assessment (PEA) outlined a 10-year mine plan that generates a pre-tax IRR (internal rate of return) of 32% (after tax 24%) and a net present value of US$201M ($128M after tax).
That assumes base case long term metal prices of US$0.91 per pound lead, US$1.09 per pound zinc and US$16.50 per ounce silver.
The report also identified how the property could be enhanced and Vendetta has identified several high priority exploration targets.
Contact Giles at [email protected]