ASX-listed Kasbah Resources announced a successful A$24 million capital raising to fund accelerated exploration and development of its Achmmach tin project in Morocco. The majority of the funds will come from the placement of 87.5 million new shares at A$0.24 per share, with the balance coming from existing shareholders. In a statement the company said that “this capital raising will ensure that the Company is fully funded to completion of the feasibility study and will facilitate the acceleration of the drilling programme to expand the current resource base at Achmmach”.
Last week Kasbah published details of a scoping study for the project which has a 2013 targeted start-up. Based on the treatment of 800,000 tpy of ore grading 1.0% Sn, the mine will produce 5,620 tpy of tin-in-concentrate. Operating costs for a mechanised underground mine (including treatment charges and transport costs) are estimated at US$12,684/tonne. Based on an assumed tin price of $23,000/tonne the project will have a gross operating margin of $72 per tonne of ore, has a net present value of $126 million and will generate an internal rate of return of 43% over a mine life of 7.5 years.
