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Print[Ferro-Alloys.com] World Titanium Resources is planning to release an announcement relating to a share placement and has been granted an ASX trading halt.
The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 6th August 2013.
The company had in late June revealed it will put a revised MoU with China's Sichuan Lomon Titanium for funding of the Tier 1 Ranobe mineral sands mine in Madagascar to shareholders for a vote.
Under the revised MoU, Lomon will contribute the first US$200 million of the capital required to develop an 800,000 tpa ilmenite mine at Ranobe.
If required, capital in excess of US$200 million and up to US$300 million will be provided by project debt which will be secured by 100% of the project’s assets. The project debt will be serviced from Lomon’s share of operating cashflows.
Any capital expenditure above US$300 million will be jointly funded by WTR and Lomon.
For providing the funding Lomon will acquire a 50% interest in the Ranobe mining and exploration licences and WTR’s other Toliara Sands Project exploration licences.
The target date for the start of construction will be the later of 31 March 2014 or 14 days after the development approvals are secured from the government.
WTR owns 100% of the Tier 1 Toliara Sands Project in Madagascar, which includes a Mineral Resource of 959Mt grading 6.10% total heavy mineral (THM) at Ranobe including a 161Mt Mineral Reserve at an average grade of 8.20% THM.
The Ranobe Mine is a large, scalable mineral sands asset, with relatively simple & low-risk development, and blessed with high margin, robust NPV and mining licences in place.
WTR had $2.2 million in cash as of 30 June 2013.
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- [Editor:editor]
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