Tertiary taps funding seam for £1.8m
TERTIARY Minerals, the Macclesfield-based company mining for fluorspar deposits in Scandinavia, has announced plans to raise a further £1.8m by way of a new placing at a price of 6p per share – a discount of 1p on yesterday’s closing price of 7p.
The company is placing 29,999,994 new ordinary shares with both existing and new shareholders – a stake equivalent to almost 34% of the current issued shares or just over 25% of the enlarged total.
It said the proceeds would be used to continue the development of its Storuman fluorspar project in Sweden, to develop other company-owned projects and for general working capital purposes.
Last week Tertiary Minerals declared a pre-tax loss of £321,563 for the year to September 30 and finished the period with cash reserves of just over £370,000.
However, executive chairman Patrick Cheetham hailed a year of success, pointing to a positive study in July which had had confirmed the potential of the Storuman project, arguing that it should provide “an attractive payback and particularly strong cash flow over the important first five years of the project”.
The firm said that an 18-year mine life could yield revenues of $616m for an upfront capital cost of $46m.
This morning the firm said that detailed laboratory analysis of drill core from its most recent drilling programme is ongoing, but that early results are expected in January.
It added that its long term aim was “to become Europe’s largest fluorspar producer”.
