Business
NovaCopper Announces Private Placement Financing
TSX, NYSE-MKT Symbol: NCQ VANCOUVER , July 1, 2014 /CNW/ - NovaCopper Inc. (...
About this update from Trilogy Metals Inc.
[{"type":"text","content":"\n\n\nTSX, NYSE-MKT \nSymbol: NCQ\n\n\nVANCOUVER, July 1, 2014 /CNW/ - NovaCopper Inc. (TSX, NYSE-MKT: NCQ) (\"NovaCopper\" or \"the Company\") announces that it\n has entered into definitive agreements with existing shareholders to\n complete a non-brokered private placement offering of $7,500,000 in\n Units (the \"Offering\").  Each Unit will be priced at $1.15 per Unit and\n will consist of one common share of the Company and one common share\n purchase warrant.  Each common share purchase warrant will entitle the\n holder to purchase one common share of the Company at a price of $1.60\n per share for a period of five years from the closing date.  All\n amounts are in US dollars.\n\n\nThe Offering is being purchased by the Company's largest shareholders,\n including Electrum Strategic Resources LP and Paulson & Co. Inc.  Use\n of proceeds of $7.5 million will be restricted for 12 months following\n closing to a maximum of $4.0 million on general and administrative\n expenses (\"G&A\") of the Company, $2.7 million on program expenditures\n and $0.8 million on extraordinary expenses incurred in reducing annual\n G&A.\n\n\nThe Company intends to carry out a modest field program this summer\n which will primarily consist of re-logging and re-assaying historical\n drill holes at Bornite which were previously drilled and only\n selectively sampled by Kennecott, the former owner of the property. \n Targeted historical holes are located within the extensions of the\n Upper and Lower Reef mineralization captured in the Bornite Open Pit\n Resource released by the Company on March 18, 2014 and the up dip\n portion of South Reef zone. The Company anticipates that the 2014\n program will re-sample and re-assay between 10,000 and 13,000 meters of\n drill core.  This effort is a continuation of last year's program of\n re-sampling and re-assaying which targeted 33 drill holes comprising\n 11,067 meters originally drilled by Kennecott between 1957 and 1975. \n Last year's re-assay program resulted in a significant increase in the\n low-grade copper mineralization at Bornite and the Company expects that\n the 2014 re-logging and re-assaying program this year could add\n additional low grade material to the Bornite copper inventory and\n reduce the strip ratio for a potential open pit mining opera...