PERTH (miningweekly.com) – Junior Image Resources has secured underwriting support for a A$25-million capital raise to fund the construction and commissioning of an openpit and wet concentrate plant at the Boonanarring mineral sands project, in Western Australia.
Image has entered into two equity subscription deeds to fully underwrite the issue of some 250-million fully paid ordinary shares, at an issue price of 10c each.
Vestpro International and Million Up have executed subscription deeds providing certainty to the equity raising, and committing to fully underwrite the raising, with Vestpro guaranteeing a minimum of 96.2-million shares, or 10.1% of the total shares on issue, following the equity raising.
“The Boonanarring project is one of the highest heavy-mineral grade, high-zircon, undeveloped mineral sands projects in Australia. Completion of this equity raising is the final step for full funding of the project, which opens the door for work to begin on site construction and paves the way for the company’s long awaited and anticipated march to production,” said Image MD Patrick Mutz.
The project is fully permitted and is expected to cost some A$52-million to develop, with a construction lead-time of six months.
The Boonanarring deposit is expected to deliver 1.1-million tonnes of heavy mineral concentrate and the Atlas deposit an additional 711 000 t. The Boonanarring deposit is estimated to have an initial mine life of five years, after which mining will move to the Atlas deposit, which would add a further three years to the overall mine life.
First production from Boonanarring has been targeted for the fourth quarter of this year.