The majority of funds are expected to be used for working capital to advance the T3 Copper Project, towards production and procuring additional resources surrounding T3 Expansion Project area.

The T3 Copper Project in Botswana lies within a largely under-explored, highly prospective region offering a dominant copper-belt scale opportunity. It was discovered in March 2016 and holds the potential for a long-life, high-margin, open pit copper mine with significant exploration upside.

Besides,  the company has announced receipt of an unsolicited, non-binding, indicative and conditional proposal from Sandfire Resources.

The proposal is to acquire 100% of MOD shares via an all scrip transaction equivalent to $0.38 per MOD share. The MOD Board said that the proposal undervalues company’s unique and extensive assets.

MOD managing director Julian Hanna said: “Funding from this capital raise will enable the Company to progress the T3 Copper Project towards a development decision and conduct further drilling for additional resources. The unsolicited, indicative proposal for 100% of the Company received from Sandfire confirms the potential of the T3 Copper Project.

“However, the Board considers it significantly undervalues the assets of the Company. With strong ongoing support of our shareholders through a placement and a fully underwritten rights issue, we believe that the Company will have sufficient working capital to achieve our objectives.”

The company says it continues to progress the T3 Feasibility Study to reach a decision to mine in the first half of 2019. It is also in discussions with many parties which encouraged the MOD on the availability of funding options to progress the T3 Copper Project into production.

The funds raised by the company will be used to complete a 2019 capital works program that include progressing the T3 Copper Project through feasibility study, mining licence application and early T3 development work to reach a decision to mine.

Under the program, MOD plans to complete of purchase of the farm on which T3 Open Pit is located and construction of initial project related infrastructure.