Excelsior Mining Corp (TSE: MIN, FSE: 3XS, OTCQX: EXMGF) is set to raise up to C$26mln (US$20.2mln) via a share placing to advance its Gunnison copper project in Arizona.
The group will issue up to 26mln shares in the company at C$1 (Canadian) a throw.
The net proceeds will be used to develop, build and maintain the Gunnison copper project, including the acquisition of long lead items, and for working capital, it said.
The financing is non-brokered but Clarksons Platou Securities AS and Tamesis Partners LLP have been hired by Excelsior to act as finders and will be entitled to finders' fees.
Excelsior is positioned to become the newest and one of the lowest-cost copper producers in North America.
Total production is expected to exceed 2.1bln pounds of copper over a 24 year mine life at a total all-in sustaining cash cost of just US$1.23 per pound.
At current copper prices this would leave Excelsior with remarkable margin on its production, and potential for billions of dollars in cumulative cash flow.