Diablo’s $396K Placement Sets Stage for Critical Copper Drilling—Will It Deliver?
Diablo Resources has successfully raised $396,000 to fund drilling at its Phoenix Copper Project, targeting promising copper and silver prospects adjacent to the Lisbon Valley Copper Mine.
- Placement raises $396,000 from sophisticated investors
- Funds to advance drilling at Phoenix Copper Project
- Focus on Trenton and Philadelphia prospects with strong copper grades
- New shares issued immediately; options subject to shareholder approval
- Drilling planned along 1.2km strike near producing Lisbon Valley Mine
Capital Raise to Accelerate Exploration
Diablo Resources Limited (ASX, DBO) has announced a successful placement raising $396,000 before costs, aimed at advancing exploration activities at its Phoenix Copper Project in Utah. The capital injection comes from professional and sophisticated investors, underscoring market confidence in the company’s copper exploration strategy.
The placement involves issuing over 33 million new shares at $0.012 each, with one free attaching option granted for every two new shares. These options, exercisable at $0.024 and expiring in three years, await shareholder approval expected in September 2025. The immediate issuance of shares will see settlement by mid-July, with new shares ranking equally with existing stock.
Targeting High-Grade Copper Prospects
The funds will support a drilling program focused on two key prospects within the Phoenix Copper Project, Trenton and Philadelphia. Both prospects lie along a 1.2-kilometre strike adjacent to the producing Lisbon Valley Copper Mine, which currently yields 276 million pounds of copper.
Historical sampling results highlight the potential of these targets. The Trenton Prospect has shown copper grades averaging 2.79%, with samples ranging from 0.28% to an impressive 8.21%. Meanwhile, the Philadelphia Prospect boasts even higher grades, averaging 6.29% copper and including samples with up to 45.7% copper and 219 grams per tonne of silver. These figures suggest significant mineralisation that could materially enhance the project’s resource base if drilling confirms continuity and scale.
Strategic Positioning Near Lisbon Valley
Diablo’s Phoenix Copper Project benefits from its proximity to the Lisbon Valley Mine, operated by a major copper producer. This adjacency not only validates the geological prospectivity but also offers potential infrastructure advantages should the project advance to development stages. The company’s timely capital raise and planned drilling program position it well to unlock value from these high-grade copper-silver targets.
Lead manager incentives include 3.5 million options subject to shareholder approval and a 6% fee on funds raised, aligning interests to support the company’s exploration success. CEO Lyle Thorne emphasised the importance of this funding round in accelerating the company’s exploration agenda and delivering on its growth ambitions.
Bottom Line?
With drilling imminent, Diablo’s next steps will be closely watched for signs of a copper discovery that could reshape its growth trajectory.
Questions in the middle?
- Will the shareholder meeting approve the issuance of the 20 million options?
- How will initial drilling results at Trenton and Philadelphia influence resource estimates?
- What timeline does Diablo envision for advancing from exploration to potential development?
