Heavy Minerals (ASX:HVY) has completed a share purchase plan (SPP) and placement, as previously reported, to fund a Prefeasibility Study (PFS) for the Port Gregory Project in Western Australia.
The company received applications for about 4.213 million new fully paid shares and raised $345,501. The company has received applications for a further 1.129 million new shares at $0.082 to raise a further $92,577, through placing available shortfall under the SPP.
The issue of new shares under the SPP and placement is anticipated to occur today (22 March 2024).
Heavy notes the company is awaiting receipt of further royalty funds.
Funds from the SPP are also intended to be put towards permitting activities for Port Gregory, as well as additional works at the Red Hill Project and other priority exploration targets, costs of the SPP and general working capital.
Heavy Minerals recently completed a Scoping Study which demonstrates the potential for a 16-year mine life project with a net present value (NPV) of $253 million and a capital cost of $110 million.
Earlier this month the company signed a non-binding memorandum of understanding (MOU) for the future sales of a minimum of 15,000tpa of garnet to be produced at its Port Gregory Project for an initial 3-year period with ABSS.
This offtake will account for about 10% of the company’s annual future garnet production at its Port Gregory Project and will be sold into the Australian and New Zealand sand blasting and water jet cutting markets by ABSS.
The Port Gregory project covers a 226km-square area in Western Australia.
Heavy Minerals is an Australian-based industrial minerals explorer and wholly owns the Port Gregory and Red Hill projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Heavy Minerals
