Australian miner raising funds for Comval project

Australian miner Mining Group Limited is raising A$2.4 million from the Australian bourse to fund exploration activities in its copper-gold project in Campostella Valley and in Western Australia. 

In a disclosure to the Australian Stock Exchange last week, the company said the funds raised would be used for exploration and drilling programs at the Comval Copper-Gold project.

The company will issue around 70.9 million shares at A$0.035 per share.

The firm has appointed Cygnet Capital as the underwriter for stock rights offering.

In January, it disclosed that it has uncovered gold rich skarns in the Tagpura target site of its Comval Copper-Gold project in Campostela Valley.

The drillholes returned mineralization grades of 2.19 gram per ton of gold (g/t Au), 3.56 gram per ton of silver) (g/t Ag) and 0.33 percent copper (Cu).

Likewise 4.62g/t Au, 4.30g/t Ag and 0.57 percent Cu.

Copper and gold mineraisation was first discovered in the area of the Comval project during the 1960s. It was mined in the 1980s by Sabena Mining Corp.