Precious Metals raises $14 million
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Precious Metals Australia Ltd has raised $14 million for redevelopment of the controverial Windimurra vanadium mine.
PMA said the funds raised brought cash resources to over $45 million and secured the anticipated funding required for the proposed mine redevelopment. The cost is estimated to be $100 million.
The Windimurra project was built by Swiss-based Xstrata AG and junior partner PMA in 1999 for over $200 million, and was the world's largest primary vanadium mine, supplying 10 per cent of the market.
The project was mothballed in 2003 and part-demolished when the vanadium price hit record lows and the State Government invested $30 million in support infrastructure.
PMA regained full ownership of the mine in August this year.
The full announcement is below:
The Company has today made a placement of 9,680,000 ordinary shares at a price of $1.44 to institutional and sophisticated investor clients of Mirabaud Securities Limited, a London based stockbroker, for a fee of 2.75% of the amount raised.
The funds raised of approximately $14m bring the Company's cash resources to over $45million which secures the likely equity funding requirements for the proposed Windimurra vanadium mine redevelopment, the cost of which is estimated to be $100m.
The initial stage of the design engineering study being conducted by Hatch engineers is close to being completed at which time the Company will be in position to:
- Identify the required design changes to the previous Windimurra Plant which will improve operability, throughput and operating costs.
- Confirm initial capital costs for the redevelopment of the mine.
- Estimate operating costs for a re-opened mine.
- Provide a timeline for construction and commissioning.
The Company will have 75,720,430 fully paid ordinary shares on issue inclusive of the shares which are the subject of this announcement.
Mirabaud Securities has strong natural resources research capacity in London, and has undertaken to produce and to publish detailed research on the Company.