Industrial mineral exploration company Heavy Minerals on Wednesday announced a capital raising through a share purchase plan (SPP) to raise up to A$750 000 to complete the Port Gregory project prefeasibility study (PFS) work, while awaiting the receipt of royalty funds.
The ASX-listed company will issue up to 9 146 342 fully paid ordinary shares at A$0.082 each. The offer will close on March 6.
The proceeds will be used to complete the PFS and to advance permitting activities for the Port Gregory project, as well as for additional works at the Red Hill project. Both projects are in Western Australia.
Port Gregory has a mineral resource of 166-million tonnes at 4.0% total heavy minerals (THM). This comprises a measured mineral resource of 126-million tonnes at 3.8% THM, an indicated mineral resource of 20-million tonnes at 6.5% THM, and an inferred mineral resource of 20-million tonnes at 2.9% THM. This includes 5.9-million tonnes of contained garnet and 260 000 t of ilmenite.
An exploration target been defined for Red Hill using cut-off grades for reporting of 3% THM and 1% THM and ranging from 90-million to 150-million tonnes of material at 5.4% to 4.1% THM.