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Pacifico Minerals Limited (ASX:PMY), based in Perth, explore for mineral tenements in Australia and Latin America with a bent towards gold, copper, silver, zinc, lead, cobalt, and manganese deposits.
Currently, the company is focussed on developing the Sorby Hills Lead-Silver-Zinc Joint Venture project wherein it owns a 75% interest with the remaining 25% interest held by China-based Henan Yuguang Gold & Lead Co. Ltd.
On April 15th, 2019, Pacifico Minerals informed the market that it had completed the final consideration payment for the acquisition of the Companyâs 75% interest in the Sorby Hills Project, thereby obtaining full and unencumbered access to the property. The project is largely supported by established infrastructure, including readily available port facilities allowing for fast-tracked production.
Since the transaction was executed in October 2018, Pacifico Minerals accelerated the completion of ~ 5500m of resource infill and expansion drilling which underpinned an updated Mineral Resource Estimate resulting in an increased Global Resource of 29.97Mt of 4.7% Pb equivalent (3.7% Pb, 43g/t Ag and 0.6% Zn, using a 1.0% Pb cut off) in March 2019. Thereafter, an updated Pre-Feasibility Study was conducted which confirmed that Sorby Hills is high quality, high margin base metals project with compelling economic viability which includes pre-tax NPV (8% discount rate) of AUD 243 million and pre-tax IRR of 62%.
Besides, the pre-production capital expenditure of AUD 95.4 million including AUD 10.5 million contingency has been estimated with a pre-tax payback of 16 months from commercial production. The shallow open pit mining with C1 direct cash cost of production would be around USD 0.06/lb including silver credits.
With the EPA approval and mining leases grants in place, the company is speeding up the completion of remaining pre-development works. The infill drilling program is planned for May 2019 targeting an upgrade in Mineral Resource to support higher throughput in an optimised Pre-Feasibility Study in Q4 2019. Also, offtake discussions are underway with the joint venture partner and the Definitive Feasibility Study programs have already commenced.
Recently, Pacifico Minerals received firm commitments from sophisticated and professional investors to raise AUD 4 million (before costs), for a placement of approximately 666 million shares, in two tranches, at an issue price of AUD 0.006 per share.
The Tranche 1 placement was accomplished as announced on April 15th, 2019, whereby 410 million shares were issued to raise AUD 2,460,000. The funds accumulated were then utilised to finalise the Sorby Hills transaction as mentioned above. The remaining will be used to continue phase 2 infill and expansion drilling and for general working capital purposes.
The remaining 256 million shares to raise ~ AUD 1.54 million via Tranche 2 of the placement will be issued, subject to shareholder approval, after an extraordinary general meeting that is scheduled to be held in late May 2019.
For the half-year ended December 31st, 2018, Pacifico Minerals recorded a net loss of $ 1,728,752, up on $ 668,979 as of December 31st, 2017. At the end of the period, the net cash assets amounted $ 2,293,231.
The PMY stock price closed the dayâs trading at AUD 0.008, up by 14.29% and with ~ 7 million shares traded as on April 15th.
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