Iluka ups stake in Metalysis

18/02/2016 - 11:48

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Mineral sands miner Iluka Resources has made good on its commitment to invest further in UK technology company Metalysis, announcing today a $12.2 million injection into the business with plans for another $8.1 million soon.

Iluka ups stake in Metalysis
Iluka non-executive Gavin Rezos is on the board of Metalysis.

Mineral sands miner Iluka Resources has made good on its commitment to invest further in UK technology company Metalysis, announcing today a $12.2 million injection into the business with plans for a further $8.1 million soon.

Iluka holds a 20.8 per cent stake in Metalysis, which is developing technology that has the potential to produce titanium powder directly from rutile and synthetic rutile.

The miner planned to increase its stake in the business last year, but deferred the investment until today.

Iluka has committed $12.2 million in Metalysis, and says it will commit a further $8.1 million before mid-July, to take its interest to 28.8 per cent.

Following the investment, Iluka will have the right to appoint two directors to Metalysis’s board.

Iluka non-executive director and prominent local technology investor Gavin Rezos is already on the board of Metalysis.

Iluka managing director David Robb said if Metalysis could commercially produce titanium metal powder direct from rutile and synthetic rutile, at materially lower cost than current technologies, then a dramatic expansion in demand for titanium metal and alloys could be expected.

“The application of titanium powder in 3D printing also represents potentially significant opportunities in a rapidly expanding market,” Mr Robb said.

“Such developments would be positive for high grade titanium dioxide feedstock demand.”

 UK-based Woodford Patient Capital Trust is also investing in Metalysis.

Iluka shares were 4.8 per cent higher to $6.86 each at 11:45am.

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