07/04/2020 - 12:49

Blackstone raises $6.8m

07/04/2020 - 12:49

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Blackstone Minerals is raising $6.8 million from a share placement to an overseas nickel manufacturer, as part of an agreement to co-develop a nickel processing facility in northern Vietnam.

Blackstone raises $6.8m
Blackstone will co-develop a processing facility for its nickel sulphide project in Vietnam. Photo: Blackstone Minerals

Blackstone Minerals is raising $6.8 million from a share placement to an overseas nickel manufacturer, as part of an agreement to co-develop a nickel processing facility in northern Vietnam.

The facility is associated with Blackstone’s Ta Khoa nickel sulphide project.

The placement is the first stage of the partnership agreement whereby Blackstone and South Korea-based EcoPro will work together on developing the processing facility.

West Perth-based Blackstone will issue 40 million shares at 17 cents per share to EcoPro’s subsidiary, EcoPro BM, who will then appoint a director to the Blackstone Minerals board.

Further, Blackstone will exercise its binding option agreement to purchase Vietnam-based AMR Nickel’s 90 per cent interest in the Ta Khoa project.

Blackstone entered into the 12-month option period with AMR last year, which required Blackstone to make $US100,000 quarterly payments.

It will exercise the option by issuing $1 million worth of Blackstone shares.

Managing director Scott Williamson said the placement strengthened the company’s alliance with EcoPro.

“Our Ta Khoa Nickel-PGE project has the potential to deliver the critical raw materials required for EcoPro’s cathode manufacturing to meet the demand from the imminent electric vehicle revolution,” he said.

Blackstone says it has begun a scoping study on the downstream processing facility at Ta Khoa.

The study will be announced in the third quarter of FY20 alongside a maiden resource for the nickel sulphide project.

Shares in Blackstone were up 28.6 per cent at 2:05pm AEST to trade at 14 cents.

Meanwhile, rare earths explorer Peak Resources has received commitments to raise $1.5 million from an oversubscribed share placement.

The company, also based in West Perth, will issue 100 million shares at 1.5 cents per share, with the funds to cover general operating expenses and maintain its financial position.

Peak chairman Peter Meurer said the company had acted swiftly to secure a clear cash runway into early 2021.

“The current equity market environment is extremely uncertain and volatile, and likely to be that way for some time,” he said.

“It was critical for the financial security of the company that we took these prudent measures now.”

Shares in Peak Resources were down 27 per cent at 2:15pm AEST to trade at 1.9 cents per share.

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