View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 15, 2018updated 01 Jul 2020 1:03pm

Kasbah gets financing for Achmmach tin project development in Morocco

Australia’s Kasbah Resources has secured an additional A$5m ($3.55m) convertible loan from strategic investor Pala Investments to fund the advancement of the Achmmach tin project in Morocco.

Australia’s Kasbah Resources has secured an additional A$5m ($3.55m) convertible loan from strategic investor Pala Investments to fund the advancement of the Achmmach tin project in Morocco.

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

The Australian mineral exploration and development company said that the balance of the existing Pala loan, which will be A$3.5m ($2.48m) at the time of shareholder approval, will be further increased and changed into the convertible loan, providing an additional funding of up to A$1. 5m ($1.06m).

Kasbah expects to begin construction of the tin project in the first half of next year.

To be priced at A$0.012, the convertible loan is conditional on certain conditions, including Kasbah shareholder approval.

Under the arrangements, Kasbah will receive an immediate advance of A$500,000 under the existing loan agreement.

Kasbah will use these funds to meet development costs for project financing, engineering and technical optimisation work.

Kasbah Resources CEO Russell Clark said: “The financing announced today removes a near-term repayment event and provides Kasbah with further capital to progress key workstreams, including engineering and financing ahead of project construction planned for the first half of 2019.”

“The financing announced today removes a near-term repayment event and provides Kasbah with further capital to progress key workstreams.”

“We carefully considered our near-term funding options prior to agreeing to proceed with the Pala convertible loan proposal.

“It is important to note that Kasbah remains free to progress any alternative funding proposals that emerge prior to the shareholder vote that is expected to be held in December 2018.”

Subject to closing conditions, a financial close on the convertible loan facility is anticipated to take place by the end of December.

Based on the definitive feasibility study (DFS) released in July, the project development requires a capital cost of $96.4m.

The project is estimated to have post-tax net present value (NPV) of $98.1m and an internal rate of return (IRR) of 23%. Through a proposed underground mining operation, the project will produce 750,000t of ore per year over an initial mine life of ten years.

Kasbah owns a 75% interest in the project, while the remaining stake is held by its joint venture partners, Toyota Tsusho (20%) and Nittetsu Mining (5%).

Related Companies

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology