Crazy Horse Resources Inc announced a strategic investment by Copper Development Corporation on a private placement basis of 6,666,667 common shares of the Company at a price of USD 0.75 per Share for proceeds to the Company of CAD 5,000,000.
CDC is a copper mining and development company that holds interests in two porphyry copper projects in the Philippines the Hinoba an and Basay Copper Projects. CDC's shares are traded on the AIM market of the London Stock Exchange. CDC was admitted to AIM on December 13th 2010 at which time it raised approximately USD 63 million with a concurrent placing of new shares.
The Hinoba an Copper Project is an open pittable copper porphyry deposit with a granted mining tenement located approximately 700 kilometers south of Manila on the island of Negros in the Philippines. After acquiring the project in November 2009, CDC undertook a drilling program and in July 2010 completed an updated scoping study on the project to provide direction on its future development. CDC is focused on completing a feasibility study on the Hinoba an Project in 2012.
The Basay Copper Project is a previously mined copper porphyry deposit located approximately 25 kilometers southeast of the Hinoba an Project. CDC is carrying out confirmatory drilling designed to confirm historical mineralization and to estimate a JORC NI43-101 compliant resource by the end of 2011, as well as test the extension of known mineralization at depth and along strike.
CDC is focused on enhancing the value of both projects with an aggressive exploration program on the highly prospective tenements and identifying new opportunities for growth through possible acquisitions of complementary mineral properties.
As a condition to CDC's investment, the Company is pleased to announce that Mr Mitch Alland executive chairman and CEO of CDC will be appointed as a non executive director of the Company on closing of the private placement. Mr Alland was executive vice chairman of AIM listed Copper Resources Corporation from 2005 to 2007, a previous owner of the Hinoba an Project and another copper project in the Democratic Republic of Congo. Prior thereto, Mr Alland had 23 year career at the World Bank and the International Finance Corporation where he had extensive experience with mining projects worldwide including serving as director of several mining companies including director of Comsur, the largest private mining company in Bolivia and an alternate director of Escondida, the large Chilean copper mining company.
Mr Johan Raadsma president and CEO of Crazy Horse said that "CDC's team is highly respected in the Philippines for porphyry copper exploration and development. This strategic investment by CDC and the addition of Mitch Alland's stellar corporate and financial experience will further strengthen development success of our Taysan copper gold project.”
