re: rab/abu dabbab/ 20 mill. Gippsland gets UK backer
Michael Quinn
Wednesday, December 01, 2004
TANTALUM hopeful Gippsland has raised around $1.44 million after placing 20 million shares at 7.2c (3 pence) per share with a fund managed by UK-based investment management company RAB Capital.
As part of the placement, RAB has also been granted 10 million unlisted options exercisable at 4p each before the end of 2007.
The Perth-based company said its ability to attract RAB as a cornerstone shareholder was greatly aided by the recent completion of the bankable feasibility study for its 2 million tonne per annum Abu Dabbab project in Egypt.
The feasibility showed the US$80.5 million project could produce 650,000 pounds of tantalum per annum (plus 2220tpa of tin), generating net free cash flow of US$127 million over the initial 13 years of an estimated 20 year mine life.
Negotiations with banks are reportedly underway, with project start up expected in around 18 months.
Shares in the company closed down 0.5c at 9.5c.
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