The Traxys trading group is investing A$1.0 million in ASX-listed Kasbah Resources, which is developing the Achmmach tin project in Morocco. Traxys Projects LLP will take 13.3 million ordinary shares at A$0.075 per share, mirroring deals announced last month to raise A$3.5 million in equity finance from the International Finance Corporation and African Lion Fund. As with the previous investments, Traxys has also been granted options to take up additional shares over the next two years.
"Kasbah recognizes the significant experience that Traxys has in the area of tin marketing and Traxys is now the second major tin player to take an equity stake in Kasbah," said Kasbah Managing Director Wayne Bramwell. However he added that “this is a straight equity investment. It has no conditions attached to it with respect to concentrate offtake or marketing. The project is expected to produce some 5,000 tpy of tin-in-concentrate.
Traxys last year invested in another ASX-listed company, Wolf Minerals, which is developing the Hemerdon tungsten-tin project in the UK. In that case a memorandum of understanding on offtake of tin and wolframite concentrates was agreed as part of the deal.
