Metals X announced on Friday that it had raised A$59.4 million in a new share placement with two Chinese groups. Existing major shareholder Jinchuan Group is to inject A$17.7 million for 59 million shares at $0.30 per share, while APAC Resources will contribute A$41.7 million for 139 million shares, 14% of Metals X’s equity. APAC Resources is a Hong Kong listed company backed by several PRC steel mills including the Shougang Group Corporation, one of China’s largest steelmakers, as its major shareholder.
The placement provides working capital which will be used in the re-opening of the Renison and Mt Bischoff tin mines in Tasmania this year, which is expected around mid-year. A feasibility study on the treatment of tailings at Renison is also under way. However the Chinese companies may be more interested in Metals X’s large Wingellina nickel project which will be advancing through feasibility studies during the year.
In a statement Metals X Managing Director, Peter Cook said “The confidence that China’s largest nickel producer, Jinchuan, has shown in Wingellina as its prime nickel oxide project is a major endorsement of its potential. Further, the interest and entry of the Shougang Steel-backed APAC Resources to the register is a further recognition of the significant asset portfolio of the group and the potential for shareholder value to be enhanced as each of the projects progresses to production.”
