Excelsior Mining Corp.
, Stock Forum
), a junior mining firm that enjoyed a 358% jump in its stock price last week, is looking to do a financing in the near future.
Excelsior President and CEO Stephen Twyerould told Stockhouse this week that the company needs to raise another $14 million in order to fund a feasibility study and secure permits for its Gunnison project near Tuscon, Arizona.
That’s on top of roughly $9 million that would come from options potentially being exercised, he said.
Excelsior shares climbed 358% to 55 cents on January 17, 2013 on the back of results from a pre-feasibility study that was conducted on the North Star Deposit at Gunnison. It shows that Gunnison has the potential to be one of North America’s lowest-cost copper producers.
The company hopes to achieve that goal by using a complex procedure known as in-situ recovery to produce 110 million pounds of copper annually at an average life-of-mine operating cost of US68 cents a pound. Copper was trading this week at US$3.33 a pound on the spot market.
As investors continue to take profits off the table following last week's rally, Excelsior was down 8.6% to 37 cents Wednesday, leaving a market cap of $22 million, based on 59.1 million shares outstanding. The 52-week range is 64 cents and 9.5 cents.
“What we would like to find is a financier with deep pockets who is willing to do an offtake agreement,’’ Twyerould said.
He said the company hopes a financing might come from someone in the private equity sector who could easily write a cheque for $15 million.
In the short term, he said the company might look to do a small equity financing, one that would avoid excessive dilution.
Twyerould said dilution is something the company hopes to avoid because family of the company's later founder Jim Sullivan continue to be big shareholders.
A family trust set up James Sullivan, added to the holdings of his son Kevin, means the family currently control 9.7 million shares or 18.3% of the voting rights attached to the common shares. For his part, Twyerould holds 7 million shares.
Mark Marobito, a Vancouver-based director who provides management services to the company via King & Bay West, also owns 1.9 million shares.
Twyerould is a native of New South Wales in the Australian Outback. He said it was family ties that brought him to his current position as CEO after his wife expressed a desire to move back to Pheonix from Australia in 2005 so that she could be closer to her family.
It was soon after moving to Pheonix that Twyerould was introduced to the late Jim Sullivan, the original Gunnison property holder.
Twyerould had previously been involved with Reliance Mining Ltd. a western Australian company with nickel projects, which was acquired in March, 2005, by Consolidated Nickel Pty Ltd.