Aus Tin Mining Limited (ASX: ANW) is an ASX based metals, and mining company, primarily focused on the mining and production of Tin. It is working on several projects, including its recently commenced production at the high-grade Granville Tin Project located north of Zeehan, where it intends to expand to undertake a further exploration to extend the life of mine. The company is also focusing on a Taronga Tin Project situated near Emmaville. The exploration activities at this site have already revealed potential credits for molybdenum, silver, rubidium, copper, lithium and tungsten. After observing these activities, highly prospective targets have been set within the company’s tenement.
On 12th April 2019, the company announced that it has received commitments to raise capital of $450,000 before costs through a private placement of shares, which will be led by Everblu Capital Pty Ltd. Under the placement, a total of 40,909,091 shares will be issued at an average price of $0.011 per share to sophisticated and professional investors, in accordance with ASX Listing Rule 7.1.
In addition to the placement, the company has also considered an alternative form of capital raising, which included share purchase plan of up to $750,000. Under this plan, the company intends to offer the shareholders the opportunity to participate in a share purchase plan on the same terms as the private placement, details of which will be released soon by the company.
The proceeds from the placement will be utilised primarily towards Taronga Stage 1, with the remaining capital being used to explore Mt Cobalt and general working capital. Notwithstanding near?term sales revenues from Granville, the company needs additional funds to file the necessary financial guarantees for environmental bonding associated with Taronga Stage 1. The company is working towards getting the final regulatory approvals after which it will commence Taronga Stage 1 with the funds received.
The total capital cost for Taronga Stage 1 is estimated to be $3 million. As the Taronga Stage 1 is yet to begin, most of the expenditure is being forecasted for the second half of the year 2019 which is scheduled to coincide with sustained cash flows from Granville. Simultaneously, mining operations at Granville are readying to transition to skarn material. The transition to an increased proportion of skarn material in plant feed will ramp?up the production of tin concentrate.
Mr Peter Williams, CEO of the company, stated that the company is excited about commencing stage 1 work at Taronga, which is a flagship asset of the company. The company’s desire to accelerate work at Taronga, and capitalise on the increasingly positive sentiment towards tin, was the reason behind raising capital at this juncture, in order to fund the mine’s establishment.
On 29th March 2019, the company announced that it had entered into an agreement with Lucas to sell Waste Rock at Granville.
The company has a market capitalisation of A$27.83 million. On the technical front, the stock fell by 14.29% and last traded at A$0.012 after making an intraday low of A$0.011 as on 12th April 2019. The stock has fallen by more than 41.6% in the last six months. The YTD return stands at 7.6%.
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