27/03/2014 - 15:57

Tungsten plans $4.2m capital raising

27/03/2014 - 15:57

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Belmont-based junior Tungsten Mining hopes to raise about $4.2 million through a heavily discounted share placement and entitlement offer to fund engineering studies at its Kilba tungsten project in the Gascoyne.

Tungsten plans $4.2m capital raising

Belmont-based junior Tungsten Mining hopes to raise about $4.2 million through a heavily discounted share placement and entitlement offer to fund engineering studies at its Kilba tungsten project in the Gascoyne.

In a capital raising announced to the market after the close of trade, Tungsten said it would launch a renounceable entitlement issue on a one-for-one basis at 4 cents each.

It will also issue 10 million new shares at the same issue price through a placement to two institutional clients of Eight Carat Securities.

The issue price of 4 cents per share represents a 43 per cent discount to the company's last closing price.

Tungsten managing director Paul Berndt said the funds would be applied to drilling, metallurgical testing and engineering studies at the Kilba deposit.

"The securing of this funding will mark an important milestone in the development of Tungsten Mining into becoming a tungsten miner in the shortest possible time frame," he said.

Eight Carat Securities will also partially underwite the entitlement offer.

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