Two ASX-listed Australian exploration companies actively developing substantial tin mine projects this week announced share placements to new investors. Kasbah Resources, which is developing the Achmmach tin project in Morocco, will raise A$3.5 million from the World Bank and its major existing shareholder African Lion Fund. Meanwhile Venture Minerals will raise A$5.5 million from an unnamed European institution towards its Mt Lindsay tin-tungsten-magnetite project in Tasmania.
Subject to various approvals, Kasbah is placing 32.5 million ordinary shares with IFC, part of the World Bank Group, to raise A$2.4 million, while African Golden Lion will subscribe to 14.5 million shares on the same terms to raise A$1.1 million. Both parties have also been granted options to increase their stakes over the next two years. Apart from providing extra capital, Kasbah believes that IFC’s involvement gives it strategic support in Morocco and international experience in environmental and social sustainability programmes. IFC has invested US$692 million in Morocco since 1962.
Venture Minerals will issue 17 million shares to its European “cornerstone investor”. The deal follows several months of technical, financial and legal due diligence. The A$5.5 million will fund further exploration work to expand the project’s resource base and extend the projected mine life from the seven years plus calculated in an initial scoping study.
