ASX-listed tin producer, Elementos Limited secures a $2.0 million loan facility from its largest shareholder and Non-Executive Chairman Mr Andy Greig.
In the announcement dated 17 April 2019, Elementos Limited (ASX: ELT) announced that it entered into an unsecured Loan Facility with Mr Andy Greig for a value of up to AUD$2.0 million for a maximum term of 24 months.
The Facility along with the company’s existing cash balance of $850,000, as at 31 March 2019, provides Elementos with the flexibility to draw down funds to continue progressing its Oropesa development strategy in Spain.
This comes after the Board determined that the loan is on arm’s length commercial terms and as such, resolved to execute the loan agreement. The Loan provides the ability to draw down in minimum tranches of $250,000 at the discretion of Elementos. The interest rate has been set to 6% per annum on drawn funds. However, the company does not require to repay principal or interest during the loan term.
Oropesa Tin Project is one of the key investments of the company. It is located about 190 kilometres north of Seville, in Andalucia Province of Spain. Its location defines the proximity to major highways which link to export ports, water supply and power supply.
The ongoing development of Oropesa is focused on additional drilling to target a resource expansion, the optimisation of the process flowsheet to improve tin recoveries and minimise operating costs as well as finalisation of the right to operate that includes development approvals.
Further, the company has informed that the deposit has the potential for simple drill and blast, truck and shovel open cut mining operations and has more than 250 cored drill holes for greater than 54,000m. Its Measured & Indicated Resources are 9.34mt @ 0.55% Sn & 3.2mt @ 0.52% Sn in Inferred Resources.
Elementos also released its ‘Investor Presentation March 2019’ that was presented in Australian Energy & Minerals Conference, Brisbane.
The company highlighted its strategy to build a multi-project tin exploration and production company with a projects’ pipeline to deliver high value for shareholders with tremendous growth potential. It holds a diversified portfolio of high quality near production and exploration tin projects, in jurisdictions with long mining histories, across Spain, Australia and Malaysia.
There has been an upside global trend in the use of refined tin, but comparatively, it could be seen that the stock is drifting lower with shortfall predicted in tin supply shortly.
ELT holds JORC Mineral Resources totalling 134,600 tonnes of contained tin with significant growth potential from exploration across all assets. It also has a near term production asset at Oropesa in Spain, and potential to discover a substantial tin resource at Temengor, Malaysia.
ELT last traded at $0.006 with a market capitalisation of $9.22 million. Over the past 12 months, the stock has witnessed a positive price change of 20.00%.
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