Kerr Mines (KER.TO) has appointed Giulio Bonifacio (ex-Nevada Copper (NCU.TO)) as its new CEO, while Claudio Ciavarella will move to an executive vice chairman position. It will be interesting to see what Bonifacio’s first steps will be now he’s heading Kerr Mines whose Copperstone project hosts just over 400,000 ounces of gold while it also has a mill on site which keeps the expected capex low at just US$23M.
Kerr also closed a C$469,000 placement of which the majority was taken up by Bonifacio as he acquired 3 million shares and 3 million warrants in a C$0.14 unit financing. The warrants are valid for two years and have an exercise price of C$0.21.
Kerr is planning to complete an underground drill program totalling almost 16,000 meters as it would like to increase the resources to almost 600,000 ounces of gold, of which 320,000 ounces would be categorized as reserves. Should Kerr Mines be successful, the mine life would increase to 8 years while the after-tax NPV5% would increase from US$27M to US$80M using a gold price of $1250/oz.