Algo Grande Copper (WKN A41UK1 / TSXV ALGR) is setting the course for the next step on its Adelita copper and gold project: The company has just announced financing with gross proceeds of up to CAD 5.0 million!
With the fresh capital, Algo Grande Copper primarily aims to finance exploration at Adelita – including a Phase II drilling program following the recently published, promising initial drilling results.
This move is clearly strategic: After the initial drilling, which according to the company confirmed several mineralized zones at depth in the Cerro Grande target area, Phase II will now specifically target expansion and new targets along a larger trend. Algo Grande is thus shifting from “confirming” initial observations to systematic expansion.
Algo Grande Copper: Overview of Private Placement Terms
The plan is to issue up to 7,692,308 common shares at a price of US$0.65 per share. The issued securities are subject to a four-month (plus one day) hold period from the closing of the placement. In connection with the offering, the company may pay certain eligible finders a cash commission equal to 7% of the total gross proceeds raised from purchasers introduced by such finder, and issue a number of warrants equal to 7% of the number of shares acquired by purchasers introduced by such finder. Each finder warrant entitles the holder to acquire one share at an exercise price of CAD 0.65 per finder warrant within a period of 36 months from the date of issuance.
Capital for Phase Two: Focus on Cerro Grande and a 6-Kilometer Corridor
In terms of content, the purpose of the financing is clear: Algo Grande intends to use the net proceeds to advance exploration at the Adelita project, particularly a Phase II drilling program. The company recalls the initial situation from Phase I: Previous drilling at the Cerro Grande skarn intersected several stacked mineralized horizons at depth – including zones not previously recorded historically.
Phase II will therefore pursue two directions. First: expansion drilling at Cerro Grande to further extend the areas identified to date. Second: drill tests along an approximately six-kilometer-long limestone corridor described as prospective, where several skarn targets occur at the surface but have not yet been drilled. Algo Grande is thus expanding its view from a central discovery area to an entire target belt!
Adelita Project: From Initial Success to Systematic Project Exploration
Algo Grande describes itself as a growth-oriented exploration company pursuing a district-scale opportunity for copper, gold, and silver in the Arizona-Sonora Copper Belt with the Adelita project. At its core, it involves the further development of the Cerro Grande discovery, which, according to the company’s presentation, forms the high-grade core of the project, and its expansion along the aforementioned 6-kilometer corridor.
Cerro Grande also indicates that the reprocessing of older geophysical data and fieldwork provide clues to a possible system at depth. The planned financing provides the basis for consistently following up here – both through expansion drilling at the existing discovery and by testing additional, already identified targets along the corridor.
Algo Grande Copper is thus sending a clear signal to the market: Phase II is not just about repeating individual hits, but about broadening the project’s story – through drilling meters where Phase I provided starting points, and through new tests along a larger structure that has so far been barely explored by drilling.
