Somerset Raises $2.39M at 0.9c to Fund Maiden 1,500m Drill Program at Coppermine

Capital Raise to Kickstart Exploration

Somerset Minerals Limited (ASX:SMM) has successfully secured firm commitments to raise approximately $2.39 million before costs through a two-tranche placement. The capital will primarily fund the company’s maiden drill campaign and regional surface sampling program at its flagship Coppermine copper-silver project in Nunavut, Canada. The placement shares are priced at a 20% discount to the recent volume-weighted average price, with free attaching options exercisable at 2.4 cents, subject to shareholder approval.

The placement is structured in two tranches: the first tranche raising $590,000 utilising existing placement capacities, and the second tranche raising $1.8 million pending shareholder approval at the upcoming general meeting on 23 April 2025. Directors Chris Hansen and Mike Edwards have also indicated their intention to participate outside the placement, further underscoring management’s confidence in the project.

Targeting High-Grade Mineralisation at Coronation

The maiden exploration campaign is scheduled to commence in early July 2025, focusing initially on the Coronation target within the Coppermine Project. This target has been delineated through reprocessed induced polarization (IP) geophysical surveys that reveal multiple coincident geophysical and geochemical anomalies. These anomalies are supported by historical rock chip samples boasting exceptional grades, including copper concentrations up to 45.4% and silver up to 263 g/t.

The planned ~1,500-meter drill program aims to test these high-priority zones, which have not seen material exploration since the early 1970s. The campaign will be complemented by a regional surface sampling and mapping effort to further refine targets across Somerset’s extensive landholding.

Strategic Landholding in a Mining-Friendly Jurisdiction

Somerset’s Coppermine Project spans 1,208 square kilometers across 70 exploration licenses and an exclusive exploration right with Nunavut Tunngavik Incorporated. The project is situated in the Kitikmeot region, a mining-friendly jurisdiction with accessible infrastructure. Over 90% of the tenure covers the Copper Creek Formation basalts, known to host high-grade copper mineralisation analogous to the prolific Keweenaw Peninsula deposits in Michigan.

The company has identified four high-priority districts within the project area, Laphroaig, Ardbeg, Jura, and Oban, each supported by historical drilling, rock chip sampling, and geophysical data. Notably, the Oban District’s Coronation prospect lies adjacent to White Cliff Minerals’ Danvers historic resource, highlighting the potential for significant discoveries.

Permitting and Next Steps

Permitting is progressing smoothly, with a positive screening decision from the Nunavut Planning Commission confirming exemption from the Nunavut Impact Review Board. Somerset has secured its water license and expects final approvals from the Kitikmeot Inuit Association within the next one to two weeks, enabling exploration activities to begin as planned.

With a tight capital structure and multiple near-term catalysts, Somerset’s Managing Director Chris Hansen emphasised the company’s attractive entry point amid a depressed market valuation. The upcoming drill results and regional sampling data are poised to provide significant newsflow and potentially unlock substantial value for shareholders.