FYI Resources (ASX:FYI) Unveils Initial Investment by International Fund GEM Global

In the latest update, FYI Resources Ltd (ASX:FYI) has announced an opening investment by the international fund GEM Global Yield LLC SCS. GEM Global has made an initial investment of $3.13 million in FYI through $80 million Capital Commitment Facility.

FYI shares traded at $0.42 mid-day on 16 February 2020.

Notably, FYI is positioning itself to become a substantial producer of 4N and 5N High purity alumina (HPA) in the rapidly advancing high-tech product markets. HPA is increasingly becoming the key desired input material for specific high-tech products, primarily for its unique characteristics, properties, and chemical properties. HPA is used as a base material in the production of sapphire substances in applications like LEDs and other sapphire glass products.

Strategic Investment by GEM Global

FYI informed that ~9.3 million fully paid ordinary shares will be issued at a price of 33.67 cents per share as part of the placement to raise gross proceeds of $3.13 million. This is the first draw down on the GEM financing facility that was put in place to provide the Company with capital support for the development of its HPA project.

Pursuant to the terms of the capital commitment facility, the proceeds from the issue of shares will be used to develop the Company’s HPA project and meet the costs of the issue. GEM witnesses improving shareholder value as FYI proceeds with the development of its HPA project strategy.

Promising Results from Joint Pilot Plant Trial

Last week, FYI announced better than expected results from FYI and Alcoa joint pilot plant trial. The joint HPA pilot plant trial samples achieved an average of 99.9986% Aluminium Oxide (Al₂O₃) purity, surpassing expectations.

Below table shows the pilot plant outcomes from the Alcoa and FYI HPA pilot plant trial:

The analytical results indicated that the joint HPA pilot plant trial attained greater than expected purity levels, as a consequence of:

• continuing enhancements to the flowsheet, and
• advancements to operational procedures from previous trials comprising the use of an alternative feedstock supplied by trial partner Alcoa.

Read More at FYI Resources (ASX:FYI) Joint HPA Pilot Plant Trial Samples Achieve 99.9986% Al₂O₃ Purity

As per FYI, the latest analytical results demonstrate exceptional qualities of FYI’s flowsheet in providing reliably high-grade and consistent HPA product, which is a crucial criterion from a customer perspective. Moreover, the results are believed to be of substantial relevance in fostering project economics for potential commercial production.

All in all, FYI is actively progressing towards the development of its fully integrated, innovative, and high-quality HPA project. Going forth, the Company intends to undertake further HP product generation through additional Alcoa collaboration pilot plant trials and build potential customer engagement.