kaolin price rise, page-9

cornell offer Been away a week, catching up with the chat.

New2waix asked about the placement. It's Good:

From MiningNews.com.au
NEW Jersey-based Cornell Capital has backed another junior resource company after signing a $10 million standby facility for the placement of ordinary shares in kaolin producer Minerals Corp.

According to MinsCorp, the deal gives it the right but not the obligation to place shares in tranches of $150,000 over the next three years (at a 3% discount to the then market price), and was made to assure shareholders and investors that the company has adequate funds to execute its business plan.

MinsCorp is developing a 120,000t per annum kaolin operation in far north Queensland, and expects to be cash-flow positive at a rate of 40,000tpa by the first half of 2004.

Whilst remaining coy on the projected financial returns, MinsCorp managing director Vic Alexander told MiningNews.net that analysts had previously calculated the company would be making a $10-15 million net profit at full production.

Cornell's backing of MinsCorp follows it providing Macmin Silver with a $10 million equity line of credit for five years from October 30.