Australian Redbank Copper announced that it has entered into an agreement with US institutional investor La Jolla Cove Investors for the issue of up to 5 convertible notes each with a face value of USD 1.5 million to raise a maximum of USD 7.5 million.

La Jolla Cove Investors is a private, family backed investment company that provides financing to small cap, publicly traded companies in the US and abroad.

Mr Bruce Morrin MD of Redbank said that La Jolla has built its reputation as a reliable source of capital for small public companies.

Mr Morrin said that "We are delighted La Jolla have supported Redbank as we build our Company to become a small reliable copper cathode and copper concentrate producer. It is difficult to raise start up capital in Australia and La Jolla see the distinct value creation potential by supporting companies early in their development stage."

He said that the funds will go towards assisting in construction of the solvent extraction electro winning cathode plant and general working capital.

Redbank announced last month that it had reached an agreement for the design and construction of a small low risk, fit for purpose modular SX-EW Plant to produce 2100 tonnes of LME grade A 99.99% copper cathode per year.

The plant is scheduled to mobilise to site in the Q2 of 2010 with construction aimed to be completed during the Q3 of 2010.