Slovakian-based silver and gold explorer MetalsTech Limited (ASX:MTC) shares were up 10% in the first hour of trades but have fallen back to breakeven.
The move comes as the company receives $3m from a Hong Kong-based and Shanghai stock exchange listed gold project developer with a $7bn market cap.
MetalsTech, through a placement to Chijin International HK (Chifeng), now has an enhanced funding base ahead of a slated mineral resource upgrade to the Sturec project.
That resource upgrade is no small consideration, given MetalsTech’s Sturec Project already boasts a resource over 1.5Moz of gold and silver combined.
In August, the company posted its first resource over 1Moz in the maiden Scoping Study for the project.
The latest assays, received in November, confirmed areas of high-grade gold mineralisation present at the project.
The deal also sees Chifeng come on board as a 9% shareholder in MetalsTech.
Chifeng’s standalone reputation is likely to attract some confidence in the play, as well as exposure to the broader Chinese investment space.
Chifeng is not only a $7bn market cap company in its own right but also one of China’s largest precious metals miners, headed by former President of Zijin Mining, Wang Jianhua.
Mr. Jianhua was also the Chairman of Shandong Gold.
All three companies are listed on major Chinese bourses.
“Before becoming Chairman of Chifeng, Mr. Wang Jianhua served as CEO of $58bn capped Zijin Mining and before that, Chairman of $18bn capped Shandong Gold,” MetalsTech boss Gino D’Anna said.
“We are delighted that Chifeng continues to increase its ownership in our exciting company.”
MetalsTech owns the Sturec deposit which is located in the European Western Tethys geological belt, also home to a number of other mining companies—including Zijin.
Get the latest news and insights direct to your inbox