Photo by: Bloombeg
PERTH (miningweekly.com) – Brazil-focused fertiliser developer Aguia Resources has completed a A$9.5-million capital-raise to fund environmental baseline studies and a bankable feasibility study at its Tres Estradas project.
Some 55.8-million shares were placed to institutional and sophisticated investors, at a price of 17c a share, to raise the capital. The shares would rank equally with existing ordinary shares and the new shares would be issued under Aguia’s existing capacity, without requiring shareholder approval.
“Aguia is very encouraged by the support we have received in this placement. We have had strong participation from many of our existing shareholders and we are pleased to welcome some highly regarded institutional investors to the register,” said Aguia MD Justin Reid.
“Their support validates our strategy and further reinforces the fact that Aguia’s assets have significant unlocked value.”
He noted that the company now had the financial flexibility to concurrently fast-track both project development work and exploration activities across its asset portfolio.
In addition to funding the Tres Estradas studies, the capital raised would also fund an infill drilling programme at the phosphate project, to convert inferred mineral resource into the indicated category, as well as an aggressive drilling programme at the adjacent targets of Joca Tavares and Cerro Preto.
Funds would also go towards lease maintenance and general working capital purposes.
A recent preliminary economic assessment into the Tres Estradas project indicated that the project could produce 500 000 t/y of single superphosphate, at a capital cost of $184-million.
The project was estimated to have a mine life of some 15.5 years, based on a 70.1-million-tonne mineral resource.