Major shareholder gives Belararox further vote of confidence as it boosts investment

Hong Kong-based shareholder Denala has increased its stake in Belararox as it proves up its Toro-Malambo-Toro copper project.

Denala has now subscribed for 28.5 million shares in Belararox in successive placements. Pic: Getty Images

• Major shareholder Denala has subscribed for an additional 7.5 million BRX shares

• It comes on top of the 21 million shares picked up by Denala as part of a recent $7.7m cap raise

• 12 porphyry targets currently being tested at TMT

Special Report: In a vote of confidence, major Hong Kong-based shareholder Denala has increased its stake in Belararox as the Argentinian copper explorer proves up its Toro-Malambo-Toro (TMT) project.

Terms of the agreement state that the issue price for the additional shares shall be no less than the 5-Day volume-weighted average price (VWAP) for shares in BRX prior to the receipt of funds from Denala and its shareholding not exceeding 19.9%.

Payment is expected to be received by November 14 this year.

Denala had already recently subscribed for up to 21 million shares in two tranches at 25c per share as part of a $7.7m placement to drive ground exploration and drilling of the TMT project.

In the recent placement, BRX also received considerable support from other high-quality new investors, including Scotia Global Asset Management, in Canada.

Back of the envelope, the 7.5 million new shares announced to be issued today will provide an additional $1.875m to bankroll upcoming drilling at TMT.

TMT’s copper prospectivity

The TMT asset is strategically located in the middle of several large operating mines and neighbours Filo del Sol – the project being acquired by BHP (ASX:BHP) and Lundin for $4.5bn.

It occupies an unexplored area between the prolifically-mineralised El Indo and Maricunga Metallogenic Belts.

That same belt contains Filo del Sol, as well as the Los Helados and Potro Cliffs projects being developed by TSE-listed NGEx Minerals.

BRX is systematically exploring its 32,000 hectare (320km2) TMT landholding and working up 12 porphyry targets which it’s currently testing.

TMT and surrounding copper projects straddling the border between Argentina and Chile. Pic: BRX

Arvind Misra said Denala’s decision to increase its equity stake signified strong confidence in Belararox and the TMT project.

Drilling is expected to begin next month as the world’s eyes focus in on Argentina’s potential as the next major growth region for copper.

“This investment will directly support the exploration of promising copper porphyry targets at the Tambo South and Malambo prospects, which are to be drill tested in November this year,” Misra says.

“We are eager to collaborate with Denala as BRX continues its trajectory of growth and success as a leading Australian exploration company.”

Copper prices briefly topped US$10,000/t last month as Chinese stimulus added to expected shortages of the metal to boost sentiment.

BHP this week said demand would rise 70% by 2050, a large component of that from new technologies, but discovery rates have lagged demand, putting a premium on any find made by BRX at the TMT asset.

This article was developed in collaboration with Belararox, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Major shareholder gives Belararox further vote of confidence as it boosts investment