FinnAust Mining raises £8.5m for ilmenite evaluation
FinnAust Mining has successfully raised £8.5m through a placing around 76.42 million new ordinary shares at 7p, as well as issuing 45 million existing shares at the same price.
Proceeds will be used for evaluation of ilmenite mining at Pituffik located in Greenland.
Gross proceeds to the company are £5.35m with £3.15m used to purchase FinnAust stock from Western Areas, an Australian nickel producer.
Western Areas’ stock holding is now 22.85% and it continues to remain a supportive shareholder.
FinnAust claimed that the placing was significantly oversubscribed, demonstrating an increased level of market interest for the company and its ilmenite project in Greenland.
The company's plan is to provide a proof-of-concept bulk sample from the Pituffik ilmenite project next year and deliver a cash-flow and dividend paying business with a long-term lifespan.
In the first quarter of next year, a new JORC resource will be published, which is currently being prepared. The company will also complete feasibility study work by June next year.
FinnAust expects that bulk sampling and sample preparation would allow it to test concentrate samples by next year and procure offers from consumers and traders to offtake Pituffik material.
The recent climatic changes have enabled easier access in Greenland and its metalliferous targets during the summer season when it becomes free from ice and snow.
Located in the Moriusaq Bay area and Interlak Delta in Greenland, Pituffik is a unique mineral sands deposit.
Moriusaq Bay shows high ilmenite grades of around 50% to date on active beaches, while the drowned beaches are also expected to carry high-grade ilmenite. The Interlak Delta shows +/- 15% ilmenite, which can also be considered a valuable resource.
FinnAust acquired the Pituffik project by issuing shares to vendors of Bluejay Mining.
An AIM listed company, FinnAust Mining is an exploration and development company focusing on projects in Greenland and Finland.