Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Clean TeQ Holdings will raise A$15-million through a share placement to complete the bankable feasibility study (BFS) at its Syerston nickel and cobalt project, in New South Wales.
An initial 33.33-million shares will be issued to an institutional investor, at a price of 39c a share, to raise an initial A$13-million.
An additional 5.1-million shares will be issued to a number of other institutional investors, also priced at 39c a share, to raise a further A$2-million.
Clean TeQ said on Thursday that the placement price represented a 2.4% premium to the company’s ten-day volume-weighted average price, and the shares would be issued under the company’s placement capacity.
The company will use proceeds from the raising to fund the BFS at the Syerston project, as well as for general working capital. The BFS is now fully funded to completion, and is on track for release in the fourth quarter of 2017.
While the BFS is being completed, the company will undertake a range of activities to secure financing for the development of Syerston, including progressing a range of options in relation to offtake finance, project level financing and debt financing.
A prefeasibility study into the Syerston project has estimated a capital cost of $680-million to deliver average production of 18 730 t/y of contained nickel metal equivalent and 3 222 t/y of contained cobalt metal equivalent.
Mining personality Robert Friedland is a large shareholder in Clean TeQ.