PERTH (miningweekly.com) – ASX-listed Pilbara Resources has raised A$2.6-million through a share purchase plan (SPP) to advance the Tabba Tabba tantalum project, in Western Australia.
The junior miner said on Friday that the SPP, which closed on July 23, had raised A$1.3-million, representing 75% of the A$1.76-million raising cap. Additional applications have now been received for A$1.3-million of the available shortfall A$500 000.
Pilbara said that the additional demand for shares would be accommodated under the company’s shareholder-approved placement capacity and the recently refreshed 15% placement capacity.
Along with the recent A$920 000 share placement to sophisticated investors, the SPP brought Pilbara’s cash position to A$3.5-million.
The current cash reserves would be used to complete construction and installation of the 120 000 t/y processing plant for the Tabba Tabba tantalum project, which was being developed as a joint venture with Nagrom Mining.
The funding would also provide working capital to fund the start of mining and commissioning at Tabba Tabba, which was scheduled to start in October this year, as well as an aggressive resource development programme at Pilbara’s other strategic metal assets.
The Tabba Tabba project currently has a Joint Ore Reserves Committee-compliant resource of 133 000 t, at 1 290 parts per million tantalum. Production over the 19-month mine life was estimated at 365 000 lb.