Shares in West Perth-based Finland base metal explorer Vulcan Resources Ltd have risen over 12 per cent following news it had secured a $3 million facility with Macquarie Bank Ltd.
The facility will be used to fund the definitive feasibility study on the Kylylahti copper project and continued exploration and development of the Kuhmo nickel project, both located in Finland.
The facility comprises a $500,000 equity injection together with a $2.5 million loan on commercial terms. In return, Vulcan will issue 10 million $0.25 options to Macquarie.
Vulcan's share price closed up 3.5 cents to 32 cents.
Vulcan chairman Dr Alistair Cowden said the company was delighted to obtain the support of Macquarie.
"Macquarie has a track record of recognising undervalued projects at the feasibility stage of development and their endorsement is most welcome," said Dr Cowden.
"Vulcan is now well funded and will be able to rapidly advance the Kylylahti copper project," he said.
"The Definitive Feasibility is on track and Vulcan hopes to make a decision to mine this year."
The Kuhmo Nickel project is a joint venture between Kuhmo Metals which is 60 per cent owned by Vulcan and 40 per cent owned by London listed emerging mining house Cambrian Mining and Polar Mining, a subsidiary of ASX listed Dragon Mining Ltd. Polar Mining hold a 5 per cent equity interest.
Yesterday, the company announced significant extensions to the Kylylahti copper deposit. The deposit is located 24 kilometers North West of Outokumpu, some 400 kilometers North West of Finland's capital, Helsinki.
