- MetalsTech (MTC) has signed a binding finance agreement with an existing Chinese financier for a $2.5 million investment to progress the Sturec Gold Mine
- Sturec Gold is a multi-million-ounce gold and silver project located in Slovakia
- The investment will go towards exploration at Sturec and general working capital
- In addition to the $2.5 million, MetalsTech has raised over $1.1 million through a placement to sophisticated investors
- MetalsTech ended the day down 13.5 per cent on the market, with shares trading for 16 cents each
MetalsTech (MTC) has signed a binding finance agreement with Zhengrong Chen for a $2.5 million investment to progress the Sturec Gold Mine in Slovakia.
Mr Chen is an existing financing partner of MetalsTech and has previously invested $300,000 through the redeemable note offering announced last month.
The $2.5 million investment will be through the issue of 10 million convertible notes
“We are pleased to be expanding our relationships in China where gold is seen as a strategic commodity and is expected to be a focus of M&A activity in the next 18 months. This will be a year of diligent preparation for MetalsTech,” Company Director Dr Qingtao Zeng said.
Out of the $2.5 million, $2 million will fund the Sturec Project, $400,000 will go towards general working capital and $100,000 will be put towards exploration at the Cancet Lithium Project.
When MetalsTech first announced securing Sturec in November 2019, the company’s shares skyrocketed 500 per cent. The company acquired the project through a binding option agreement with Arc Minerals and Ortac.
Gold mining at Sturec began all the way back in the 8th century, with historical production totalling 1.5 million ounces of gold and 6.7 million ounces of silver.
MetalsTech sees massive potential at this project which was proven earlier this month. On April 8, the miner reported a mineral resource estimate of 21.2 million tonnes at 1.5 grams per tonne of gold and 11.6 grams per tonne of silver.
Currently, MetalsTech gearing up for a 3000-metre maiden drilling program which it recently completed planning for.
Additionally, MetalsTech has raised roughly $1.125 million through the issue of over 7 million fully paid ordinary shares at 16 cents per share to sophisticated investors.
MetalsTech ended the day down 13.5 per cent on the market, with shares trading for 16 cents each.