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Valence halts trading as $75m financing plans are announced

Valence halts trading as $75m financing plans are announced

Photo by Bloomberg

1st May 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Graphite miner Valence Industries on Friday announced that it had entered into a binding heads of agreement for a $75-million debt financing facility to fund the planned expansion of its Uley graphite project, in South Australia.

Valence was expected to provide details of the funding terms, as well as details of a proposed capital raising by next week.

A previously completed feasibility study estimated that the Phase 2 expansion of the Uley project would require a capital investment of about A$37-million, over a three-year period, to increase production from the current Phase 1 level of 14 000 t/y to 50 000 t/y.

The expansion of the Uley site would provide additional processing capacity in 25 000 t/y increments of graphite output, to reach 64 000 t/y, to effectively match market demand.

Edited by Creamer Media Reporter

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