Vancouver – Soaring molybdenum prices have been very good for Adanac Moly (AUA-V), recently increasing a planned private placement to fund work on its Ruby Creek molybdenum property near Atlin in northwestern British Columbia.
With molybdenum oxide prices touching US$32 per pound, the company is raising the funds required to complete the pre-feasibility program on the project.
Adanac recently announced a $1.2-million Short Form Offering (SFO), through its agent Canaccord Capital (CCI-T), for up to 2.4 million units at $0.50 per unit. Each unit consists of a common share plus a non-transferable warrant exercisable to acquire an additional share at $0.55 per one year.
Subsequent to the SFO, Adanac arranged a $750,000 non-brokered private placement, almost immediately increased to $1.15-million by oversubscription. The financing will see the issuance of 2.3 million units at $0.50 per unit, each comprised of one common share and a non-transferable warrant exercisable at $0.60 for one year.
Earlier this year, the company engaged AMEC to initiate the pre-feasibility study. Phase 1 of the program entails developing a resource model for the basis of pit optimization and sensitivity analysis. As such, much of the recent drill program has twinned and in-filled previous holes, under the direction of AMEC for NI 43-101 compliance, to redefine historic resource figures of Kerr Addison Mines (now part of Noranda (NRD-T) and Placer Development (a predecessor company to Placer Dome (PDG-T)). An historic, non NI43-101 compliant, resource estimate of 152 million tonnes grading 0.063% molybdenum was developed by Placer in its pit study.
Since 1969, previous operators conducted almost 32,000 metres of drilling on Ruby Creek. Adanac has drilled over 9,000 metres of additional core, in 36 holes, since acquiring the project in 2001.
Adanac reports 23.2 million shares outstanding and has recently seen its shares rebound to the 67 per share level.