Raisebook

Three Projects with Well Defined Targets to be Drill Tested During the Remainder of 2018
Canterbury Resources
Canterbury Resources
ASX:CBY
  • Exploring in the southwest Pacific region that is host to numerous world-class copper and gold deposits
  • Key personnel have a track record of exploration success in the region
  • Three projects with well defined targets to be drill tested during the remainder of 2018, and further drilling planned during 2019
  • If successful, these drill programs are a potential catalyst for considerable value uplift for shareholders.
  • Each of these projects provides potential to delineate Tier-1 deposits copper-gold deposits.
  • One project is the subject of a staged Farm-In and Joint Venture Agreement with Rio Tinto PNG.
  • The price of copper has risen by 50% from a cyclical low point of around US$2.00/lb in early-2016 to a level of around US$3.00/lb during 1H 2018.
  • Emerging copper companies are well placed to continue attracting significant investor interest.
  • Raisebook is accepting bids of between $2,100 (min.) and $6,000 (max.) per entity
Raise Amount
$7,800,000
Offer Price
$0.3000
Closes
Nov 9, 2018

24/10/2018 UPDATE:

Rio Tinto Exploration (PNG) Limited has informed Canterbury Resources that drilling has commenced at the Bismarck Project located on central Manus Island, where Canterbury's 60% JV partner, Rio Tinto PNG, is managing the Stage-2 Exploration phase. This includes sole-funding a further A$12.5 million of exploration activity, after and subject to which its JV interest will increase to 80%.

The drilling program is testing buried porphyry copper-gold targets identified by Rio Tinto PNG during 2017 exploration.

The targets are principally based on geophysical anomalies, with some supporting surface geochemical anomalism. This includes the Main ZTEM Anomaly area where several conductive zones, interpreted as sulphide zones, are proposed to be drill tested.

After testing in Lae, a diamond drill rig has been successfully transported to the drill site using heli- support. The drilling of the first diamond drill hole (BISM0001) commenced early October and is currently drilling ahead at 112m (as at 18 October), to a target depth of ~600m (subject to ongoing assessment of core).

Visual assessment of the core to date has noted alteration and geology generally consistent with pre-drilling interpretation of the target location.

The location of BISM0001 (previously referred to as DH001) is illustrated in Figures 10 to 15 of the Prospectus (see pages 57 to 61).

Canterbury Resources issued a Supplementary Prospectus dated 24th October, 2018 that is intended to be read with the Replacement Prospectus dated 3rd October, 2018. The Prospectus and Supplementary Prospectus are important documents and should be read in their entirety. Together, the documents form the Disclosure Documents for the Offer. If you do not fully understand them you should consult your professional advisers without delay.

Canterbury Resources

Canterbury Resources Limited (ACN 152 189 369) is a mineral exploration company that is seeking to create shareholder value by generating, exploring and monetising potential large scale (“Tier 1”) copper-gold projects in proven mineral belts throughout the southwest Pacific region — a region that hosts numerous world-class copper and gold deposits.

The company’s experienced management team has considerable expertise and global experience in exploration, mining and finance, and key personnel have a track record of exploration success in the region.

Since inception in 2011, Canterbury has built a well-balanced and highly prospective portfolio of resource opportunities in Papua New Guinea, Queensland and Vanuatu.

Successful exploration and assessment activity at several of these projects has been advanced to the exciting drill testing phase — with drilling programs being implemented at three separate projects during the remainder of 2018, and further drilling planned during 2019.

Each of these projects provides potential to delineate Tier-1 deposits.

The majority of funds raised by this Offer will be directed at high impact drilling activity at two of the Company’s 100% owned copper-gold prospects (Briggs and Ekoato), generating considerable value uplift for shareholders if successful.

In addition, the Company holds the Bismarck Project on Manus Island in Papua New Guinea, where Rio Tinto Exploration (PNG) Limited (“Rio Tinto PNG”) is currently managing and sole-funding the initial drill testing of buried, large-scale porphyry copper-gold targets under a Farm-In and Joint Venture Agreement.

THE OFFER

Canterbury Resources (ACN 152 189 369) is offering 26,000,000 Shares at an issue price of $0.30 each to raise $7.8 million before costs.

Canaccord Genuity has been appointed Lead Broker for the IPO.

The majority of funds raised by the Offer will be directed at high impact drilling activity at two of the Company’s 100% owned copper-gold prospects — Briggs and Ekoato.

Raisebook is accepting bids of between $2,100 (minimum) and $6,000 (maximum) per entity registered with Raisebook.

The offer of the securities are made in, or accompanied by, a copy of the disclosure document which can be obtained by clicking on the "ACCESS DISCLOSURE DOCUMENT" button on this page.

Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the Disclosure Document.

Before making an investment decision, potential investors should read the Disclosure Documents entirely, and seek professional financial advice.

Investors should note that all of the Company’s projects are still in the exploration and evaluation phase. Accordingly, any investment made in the Company should be considered highly speculative.

An investment in the Company is also subject to risks, including Company specific risks such as those associated with mining and exploration, commodity price fluctuations, currency exchange and country risks associated with operating in Papua New Guinea, Vanuatu and Australia, and general risks such as adverse weather.

KEY OFFER DETAILS

Summary of the Offer:

Existing Shares 58,060,408
Share Issue Price $0.30 per share
Number of Shares to be Issued under the Offer 26,000,000
Amount to be Raised under the Offer $7,800,000
Total Number of Shares on Issue at Completion of the Offer 84,060,408
Indicative Market Cap on Completion of the Offer $25,218,122

Options granted at the Date of the Prospectus:

Expiry Date Exercise Price Number
31 December 2018 20c 2,163,087
30 June 2019 20c 4,783,888
30 June 2020 25c 1,350,000
30 June 2021 40c 1,000,000
Total 9,296,975

Options to be granted upon completion of the Offer under this Prospectus:

Maturity Date Exercise Price Number
30 June 2021 40c 3,000,000
30 June 2021 45c 1,000,000
30 June 2021 50c 1,000,000
TOTAL 5,000,000

IMPORTANT DATES

Expected Closing Date 5PM AEDT, 9 November 2018
Settlement of the Offer 13 November 2018
Expected date of issue and allotment of Shares 14 November 2018
Expected date of despatch of holding statements 16 November 2018
Trading of Shares expected to commence on ASX 22 November 2018

CANTERBURY’S THREE MAIN PROJECTS

Immediately following this IPO, three significant drilling programs will be implemented:

Ekoato

(100% Canterbury owned)

The Ekaoto project is in PNG, where a 5-hole diamond drilling program of around 1,350 metres will test an extensive area of surface gold and copper mineralisation in the upper levels of an exposed porphyry system.

The Ekoato prospect has not previously been drill tested and displays many characteristics comparable with the world-class Golpu deposit located some 60km to the north.

Significantly, several members of Canterbury’s exploration team had integral involvement in exploring the Wafi-Golpu complex, including drilling of the discovery hole at Golpu.

This region hosts some of the world's largest gold-silver and copper-gold deposits including:

  • Ok Tedi (17 Moz, Au, 6 Mt Cu),
  • Porgera (7 Moz, Au),
  • Lihir (30 Moz Au),
  • Vatukoula (11 Moz Au),
  • Wafi-Golpu (26 Moz Au, 9 Mt Cu),
  • Panguna (25 Moz Au, 7 Mt Cu),
  • Mount Morgan (8.4 Moz Au, 1.1 Moz Ag, 387 kt Cu)
  • Mount Carlton (1.4 Moz Au).

Briggs

(100% Canterbury owned, Rio Tinto Exploration Pty Ltd 1% NSR)

The Briggs project is in Queensland, where a 9-hole diamond drilling program of around 3,000 metres will further assess the resource potential of the large Briggs porphyry copper system.

Within the Briggs area, at least three mineralised zones are recognized and each has broad intercepts of low grade disseminated copper mineralisation, overlain by a thin higher-grade blanket of supergene enriched copper mineralisation.

During the next phase of assessment, Canterbury will undertake an initial drilling program focussed on mineralisation in the Central Zone, including testing for a potential higher-grade core of the system.

Most of the program will systematically drill the Central Zone over a strike length of approximately 500m to a depth of approximately 300m and a width of approximately 300m, evaluating an Exploration Target, based on the results of historic drill data combined with a modern understanding of the anatomy of porphyry systems, of 45 to 165Mt at 0.4 to 0.8% copper.

Note: The potential quality and grade of the Exploration Target in conceptual in nature and there has been insufficient exploration to estimate a mineral resource, and it is uncertain if further exploration will result in estimation of a mineral resource.

Bismarck

(Canterbury 40%, Rio Tinto PNG 60%)

The Bismarck project is on Manus Island, PNG, where an initial drilling program of 3 to 5 deep holes (each up to 600m) will test large porphyry copper-gold targets.

Bismarck is the subject of a staged Farm-In and Joint Venture Agreement with Rio Tinto PNG.

During Stage-1 Rio Tinto PNG has earned a 60% joint venture interest by sole-funding over A$5 million of exploration activity, and it has the right to increase its equity to 80% during Stage-2 by sole-funding a further A$12.5 million of exploration.

Work to date, including extensive geophysical surveys, supports developing evidence for large-scale buried porphyry copper-gold targets that have never been drill tested.

This deal closed on November 09, 2018