Parabellum Resources Limited (ASX:PBL) has received firm commitments to raise A$3.9 million (before costs) from a new share placement.
The new capital raised will fund a significant work program in both Mongolia and Australia to complete a JORC compliant Scoping Study to demonstrate the economic viability for the Khotgor Project; an updated JORC Mineral Resource Estimate, metallurgical drill programme, metallurgical test work programme and engineering designs.
The Placement comprises a two tranche offer.
Parabellum says this material transaction moves into Rare earths (REE) minerals sector via the Khotgor project in Mongolia. The project offers exposure to a potentially large undeveloped REE deposit, has a supportive local Mongolian partner, Khotgor Minerals, and is strategically located on the door step of Asian customers and potential offtake partners.
The Khotgor project is located approximately 530kms south of the capital city of Ulaanbaatar and 300km from the Chinese border. The area is well serviced by good infrastructure, skilled labour and high voltage power. It is also close to the mining centres of Oyu Tolgoi and Tavan Tolgoi.
The Board of Parabellum is delighted with the level of support received in relation to the Khotgor REE project,” Non-Executive Chairman, Mark Hohnen, said.
“We would like to thank existing shareholders for their continued support in the capital raising as well as welcoming new shareholders to the Parabellum share register; with demand for this capital raising significantly exceeding the funds being sought. I am very pleased to be working again with Peter and Battuya after a very successful time together with Bacanora Lithium”
Planned Work programmes
Over the next 12 months PBL and Temarise will undertake a significant work program in both Mongolia and Australia to complete a JORC compliant Scoping Study to demonstrate the economic viability for the Khotgor Project. This work program will comprise the following steps:
1. Complete a JORC Mineral Resource Estimate (MRE)
2. Undertake approximately 2,000 metres of sample drilling in the higher grade resource areas to obtain bulk metallurgical samples for a JORC Feasibility Study that is currently scheduled to commence in 2023
3. Undertake mine designs and pit optimisation
4. Undertake comminution, flotation and hydrometallurgical testwork in Australia to a JORC standard
5. Commence environmental baseline studies and site monitoring programs in order to allow commencement of an EIS in 2023 v) Commence environmental baseline studies and site monitoring programs in order to allow commencement of an EIS in 2023
All of this work will be undertaken by internationally accredited and recognised consultants in Australia and Mongolia.
