Koryx Copper secures C$5 million funding for Haib Copper Project
Koryx Copper Inc. has announced the successful closure of a C$5 million private placement. This funding aims to enhance operations in Namibia, specifically focusing on the Haib Copper Project. The investment will support ongoing exploration and development initiatives crucial for the company’s future growth.
The offering was primarily directed at local institutional and retail investors. This strategic move reflects Koryx’s commitment to strengthening its presence in the Namibian market, an area with significant potential for copper production.
Details of the private placement
Koryx Copper has successfully issued 2,040,816 common shares at a price of C$2.45 each. This private placement is part of a larger financing strategy that includes a previously announced C$46 million financing deal, finalized on January 20. The funds raised from this placement will address various corporate needs, particularly advancing technical studies related to the Haib Copper Project and supporting general corporate activities.
Utilization of funds
Koryx Copper will allocate the funds raised primarily to essential technical studies and exploration activities at the Haib site. The company aims to enhance its exploration capabilities and deepen its understanding of the mineral resources present at Haib. Additionally, Koryx plans to focus on maintaining working capital and covering other general expenditures.
About the Haib Copper Project
The Haib Copper Project, located in southern Namibia, is recognized as a significant copper and molybdenum porphyry deposit. Exploration efforts in the area date back to the 1970s, attracting interest from several major mining companies, including Falconbridge, Rio Tinto, and Teck. Recent assessments have revealed a mineral resource estimate of 511 million tonnes at 0.33% copper and 51 parts per million molybdenum. This indicates a considerable amount of contained copper and molybdenum, enhancing the project’s potential value in the mining sector.
Future prospects
Koryx Copper plans to finalize a definitive feasibility study by the latter half of. This study is essential for assessing the project’s viability in greater detail. It will evaluate mineable reserves and provide refined economic projections.
The preliminary economic assessment suggests the Haib project could support annual production of 88,000 tonnes of copper over a projected lifespan of 23 years. This operation will require an estimated capital investment of $1.55 billion.
Market context and strategic importance
The timing of this funding is particularly strategic, as the global market faces a potential copper supply deficit. The International Energy Agency has projected a possible 30% shortfall in copper supply by 2035. This projection could enhance the economic viability of projects like Haib. Additionally, copper prices have surged over 30% in, further increasing the attractiveness of Koryx’s endeavors in Namibia.
This funding not only strengthens Koryx Copper’s position but also reinforces Namibia’s status within Africa’s copper production landscape. The company is well-positioned to make significant advancements in the coming years, driven by financial support and the growing demand for copper in the global market.
For further information about Koryx Copper and its initiatives, please visit the company’s official website or contact their corporate communications team.