International mining funds for Tethyan Copper Company
ISLAMABAD (NNI): International Mining Funds from three of the largest mining centers of the world - Canada, united kingdom and Australia gave an overwhelming response to the Tethyan Copper Company’s IPO (Initial Public Offering).
The fund raising for Australia $ 15 million, which was heavily oversubscribed and closed much earlier then anticipated, was one of the biggest Australian resource IPOs in recent years, an official release stated here Tuesday.
This is a major endorsement of the Government of Pakistan’s policies especially towards foreign private investment in the country. This further demonstrates ample confidence by foreign investors in funding high- risk exploration activities. Foreign investors were further encouraged due to the Government’s fair and equitable National Mineral Policy, its prospective geology and the friendly hospitality displayed by the people of Balochistan.
TCC, an Australian public company will be trading under the symbol “TYC” on the senior stock exchange in Sydney.
The company is now controlled by some of the very large global institutional investors including Mincor & BHP Billiton, an alliance partner fo the Project. The company controls the Reko Diq project located in the Chagai district of Balochistan, Pakistan. This is a giant porphyry copper and gold complex with over 11 billion pounds of contained copper and 9 million ounces of gold with inferred and indicated resources as per strict Australian Standards (JORC).
TCC will spend Aus $ 15 million (US $ 10 million) to carry out a bankable feasibility study and an accelerated drilling program over the next 18 months. On successful completion TCC will launch a debt / equity financing of US $ 130 million for the construction of the H-4 Starter project, which will produce 40,000 tonnes of copper metal annually. This project is owned 75% by TCC and 25% by the Government of Balochistan. After this project, the mega-size mining project of over a US $ 1 billion, ranking amongst the top copper mining project in the world will be launched.