PERTH (miningweekly.com) – Tin hopeful Kasbah Resources is aiming to raise about A$5.2-million through a fully underwritten accelerated nonrenounceable rights issue.
Shareholders will be offered one new fully paid ordinary share for every two shares held, at an issue price of 1.5c each. The offer price represents a 7.14% premium to the company’s last trading price on the ASX, and a 4.33% discount to the ten-day volume-weighted average price.
The funds raised in the entitlement offer will allow final technical work on Kasbah’s Achmmach project, in Morocco, which will result in an updated definitive feasibility study (DFS).
A recent independent review of the DFS of the Achmmach project resulted in a number of recommendations to enhance the project, which will now be incorporated into the DFS.
“This is an exciting time for Kasbah Resources. Our Achmmach project is now in the final stages of optimisation and we expect to commence work on funding initiatives for construction at the conclusion of these activities,” said Kasbah CEO Richard Hedstrom.
“The board believes that its current cash reserves and the funds raised from the entitlement offer will provide the company with sufficient funding to complete the optimisation of the definitive feasibility study, in parallel with progressing the construction financing package, both of which are key milestones to reach a decision to mine.”