Premium Resources Ltd. released positive drill results from the Selebi Mines project in Botswana, with intersections exceeding current resource grades. The company is increasing its private placement funding to CA$44 million and enhancing leadership. With growing copper demand driven by clean energy and electrification, the outlook for Premium and the copper market appears promising, indicating potential for significant returns.
Premium Resources Ltd. (PREM:TSX.V) disclosed promising drill results from its underground Selebi Mines copper-nickel-cobalt project in Botswana, including standout intersections of 14.2 meters at 5.14% copper equivalent and 14.4 meters at 3.99% copper equivalent. These results extend mineralization beyond the previous mining resource and exceed current grades. Plans for additional drilling include targeting the South Limb and the area between N2 and N3 Limbs to explore resource potential further.
The company raised its private placement funding from CA$36 million to CA$44 million due to high demand, selling units at CA$0.30 each. Notable new investors include Frank Giustra and his Fiore Group, as well as other strategic backers. This refinancing effort aims to strengthen corporate positioning, with Morgan Lekstrom set to become the CEO, bringing experience from previous successful ventures in mining.
Premium Resources is focused on advancing both the Selebi Mines and the Selkirk project, both of which are permitted and possess substantial resources. Giustra highlighted that these projects are significantly undervalued compared to peers, indicating that the team’s strategic vision and the prime African location will attract larger companies and investments. The current mineral resource at Selebi Mines stands at 27.7 million tons with a grade of 3.25% Cu eq. The Selkirk project also shows potential with 44.2 million tons and a resource grade of 0.81% Cu eq.
The demand for copper is forecasted to surge due to its integral role in clean energy technologies, electric vehicles (EVs), and general industrial applications. Analysts expect copper consumption to grow significantly with the electrification trends, particularly in the transportation and digital sectors. BHP anticipates that by 2050, energy transition will account for a larger share of total copper demand.
Premium Resources Ltd. is strategically focused on enhancing its copper-nickel-cobalt projects in Botswana, showcasing promising drill results that exceed previous grades. The company’s recent financial maneuvers and planned projects position it favorably in a growing market, driven by copper’s critical role in the transition to clean energy. The forecast suggests significant upside potential in both the company’s assets and the broader copper market, positioning Premium for potential substantial returns.
Original Source: www.streetwisereports.com
