Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) unveiled Tuesday plans for a private placing to raise C$550,000 to advance its Pegmont lead-zinc project and for general working capital.
The firm will issue up to 11 million units at C$0.05 each, with each unit consisting of one company share and one warrant exercisable for three years at C$0.075 per share.
Yesterday (Monday), the firm announced "highly encouraging" results from test work using commercial X-ray sorters for the project, which lies in Queensland, Australia.
"At Pegmont, the XRT sorter can clearly differentiate between high-density/high-grade feed from lower-density waste material at Pegmont, we are excited by the prospects of advancing to pilot-scale test work and applying this commercially available technology to the next mining study," Michael Williams, Vendetta's chief executive officer, had said.
There are potential capital cost savings through reduced mill throughput while potential operating cost savings occur through reduced water and reagent usage, less pumped tails, and lower energy requirements, the firm had said.
Vendetta's 100%-owned Pegmont project is situated in the Mount Isa - McArthur area of Australia, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several significant lead-zinc-silver mines.
A preliminary economic assessment (PEA) on Pegmont was released by the firm in January last year.
The study outlined a 10-year mine plan that generates a strong economic return with a (base case) pre-tax internal rate of return (IRR) of 32% (after-tax 24%) and net present value of $201 million ($128 million after-tax), using long term consensus metal prices of $0.91 per pound lead, $1.09 per pound zinc and $16.50 per ounce of silver and a US$:A$ exchange rate of $0.75.
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