West Perth-based nickel company Rusina Mining Ltd raised $3.5 million through a share placement to complete feasibility studies on the company's Acoje chromite surface mine.
West Perth-based nickel company Rusina Mining Ltd raised $3.5 million through a share placement to complete feasibility studies on the company's Acoje chromite surface mine.
The full text of a company announcement is pasted below
Institutional investors in the United Kingdom have further supported moves by Australia's Rusina Mining Limited to develop a base metals project in the Philippines, injecting $3.5 million in fresh capital into the nickel developer.
The cash top-up for Rusina comes on the eve of the Company's expected announcement next month of the first JORC compliant nickel resource for its Acoje nickel, chromite and platinum group metals project on Luzon Island.
The funds, raised by way of a placement of 20,925,000 million shares at a price of 7p (0.17 AUD) per ordinary share, will be used to:
- - Complete the current Feasibility Study on the first stage of Acoje - Chromite surface mine generating early cash flow through development of a low cost, bulk mining, gravity separation operation
- - The FS is based around the proposed production of 180,000 tonnes of chromite concentrate and direct shipping of lump ore for seven years from late 2007 to enable the company to be cash positive as soon as possible to fund ongoing exploration.
- - Complete the proving up of a maiden Indicated JORC estimate for Acoje's key focus - its nickel laterite mineralisation.
The placement, made under the Company's 15 per cent share issue provision, takes the total number of Rusina ordinary shares on issue to 166 million.
"The placement proceeds ensure Rusina is fully funded through to the completion of the chromite FS and nickel laterite JORC estimate work," Rusina's Managing Director, Mr Robert Gregory, said today.
"It is a pleasing outcome considering the difficult market at the moment and shows tremendous institutional support for Rusina's new initiatives to generate early cashflow, build a solid nickel laterite resource and then fully explore the Acoje property for Platinum Group metals" Mr Gregory said.
Development of the project's nickel potential has become the most important growth strategy for the company with the exploration of the project's PGM deposits seen as excellent blue-sky potential.
Rusina has completed over 1200 hand dug test pits to define the nickel laterite since May this year and expects to deliver the first JORC estimate by next month.
The Company hopes to commence direct shipping its first nickel saprolite and limonite in early 2008.
