Elim Mining, a North American copper exploration and development company, has secured the first tranche of a non-brokered private placement of common shares of the company for aggregate gross proceeds of $3.8m (offering).

As per the terms of the company, Elim Mining issued a total of 12,705,402 common shares for $0.30 per share.

The copper exploration company said that a second tranche consisting of shares subscribed by a technical consortium involving Samuel Engineering and Q&D is expected to close in January next year.

Elim Mining president and CEO John Antwi said: “The new inflow of capital supports the Company’s overall site development strategy. In particular, the participation of the Consortium is a strong indicator of their confidence in the Stockpile Project.

“Activities will feed into a Preliminary Economic Assessment on the Cactus West and Cactus East deposits, expected in Q2 2021.

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Elim Mining said that it intends to use the proceeds to improve its resource development drilling at the Cactus Mine and Parks/Salyer properties, as well as for further technical studies of the Stockpile Project.

The proceeds will also be used for land acquisitions and general working capital.

Additionally, Elim Mining has agreed with the consortium, under which a $1.9m fee will be payable for certain services on the stockpile project by issuing common shares (6,333,333) at the deemed price of $0.30 per common share.

In accordance with their subscription, Elim will offer the consortium the right of the first offer to bid for certain future services related to the Stockpile.

Tembo Capital and RCF, the major stakeholders of Elim Mining, will be eligible for participating in the offering up to the amount required to maintain their respective shareholdings.

Antwi added: “The Consortium of technical industry professionals will provide the additional input to continue fine-tuning the economics of the Stockpile Project with drilling and metallurgical testing.

“Having our trusted consultants manage the advancement of the Stockpile allows Elim to remain laser-focused on the advancement of the larger in-ground copper porphyry resources.

“We look forward to optimising the multiple potential mining, processing and personnel synergies between the Stockpile Project and Cactus Mine.”