Sylvania raises $18m from M&G

Subiaco-based Sylvania Resources has conditionally raised nearly $18 million from a new institutional investor, with funds to be used for development and acquisitions.

The company late yesterday said it will place 25 million new shares priced at 40 pence each to M&G Recovery Fund, to raise ₤10 million ($A17.8 million).

The share placement is conditional on an admission of trading of those shares on London's Alternative Investment Market (AIM).

Following admission, M&G will have a 10.3 per cent of the total issued capital.

Funds raised will be used to increase the resource at Sylvania's Grass Valley project, bring forward the purchase of long lead items for the Teefontein plant and to complete the $6.6 million acquisition of the Lonmin dumps from Western Platinum.

The Lonmin dumps will provide additional feed for the Mooinooi plant, Sylvania said.