Yesterday shares in Metminco Ltd (ASX:MNC) jumped over 6 per cent after the copper and gold explorer announced it will take full ownership of the Los Calatos copper-molybdenum project in southern Peru.
Metminco has struck a deal with the world's largest gold miner, Canada's Barrick Gold, in which Barrick has surrendered its buy back right for the project in return for Metminco issuing Barrick 75 million ordinary share in Metminco.
After the transaction Barrick will hold around 5.1 per cent of Metminco’s capital, after Metminco completes some non-associated deals in Chile and a $30.4 million capital raising.
The capital raising at $0.38 per share compared with Metminco's closing price of $0.42 per share yesterday, after the stock rose 6.33 per cent.
Metminco plans to this year inject the new funds into an infill-extensional exploration program at Los Calatos to advance the project.
In the first half of the 2011 financial year Metminco recorded a net loss of $11.3 million.
