Matrix Metals, increases production capacity John Winters - www.egoli.com.au
Matrix Metals Limited (MRX) has increased its copper cathode processing plant production capacity to 9,000 tpa, from current levels of 5,500 tpa. The company said the expansion would generate significantly increased cashflows for Matrix. The company said the stage one expansion requires no further ore resources, no change to the technical parameters of the ore body, and would process the same total tonnes as in the current mine plan but at a increased rate.
"Matrix already owns the equipment, which are the long lead time and significant capital items in respect of the capacity upgrade, and consequently the upgrade will be undertaken relatively quickly and inexpensively," the company reported.
The copper mining firm said it expects the upgraded capacity to be completed during the June quarter 2008, for a cost of $5.5 million.
"Production at current capacity is expected to continue uninterrupted through that period."
Matrix advised it had resolved to place up to 72 million ordinary shares in Matrix at an issue price of 10.5c per share, to raise up to $7,56 million, principally to international and domestic institutional and sophisticated investor clients of Hartleys Limited and major shareholders of Matrix.
In addition, and to allow all eligible shareholders to acquire Matrix shares at the placement price, Matrix said it had resolved to undertake a share placement plan of up to 30 million.
At 1420 AEDT, Matrix Metals was released from voluntary trading halt and was up 1c to 13c.
MRX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
