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MDL funds up for Grande Côte development

13th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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JOHANNESBURG (miningweekly.com) – ASX-listed Mineral Deposit (MDL) has raised some A$40-million through an equity placement, with the company placing 20-million shares at A$2 each.

The placement would be conducted in two tranches, with the first tranche consisting of 12.5-million shares, and would be issued under the company’s 15% capacity.

The second tranche, which consists of 7.5-million shares, would be subject to shareholder approval.

MDL said on Friday that proceeds from the placement would be used to fund the company’s share of potential equity contributions to assist in the construction of the Grande Côte mineral sands project, in Senegal, as well as operational working capital.

First ilmenite and zircon production from Grande Côte is expected in March next year.

Grande Côte was anticipated to produce on average approximately 85 000 t/y of zircon and 575 000 t/y of ilmenite when in full production, making it the largest new mineral sands project currently under construction. The project would have an initial mine-life of 20 years.

Edited by Creamer Media Reporter

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