THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) received further support for the company’s West Musgrave project (WMP) from a $7 million placement to institutional, sophisticated and strategic investors.
Cassini Resources said the funds from the placement will be used for working capital throughout the feasibility study stages of the WMP and to progress its exploration stage projects (Yarawindah Brook and Mt Squires) in Western Australia.
The WMP studies are funded by Earnin/JV partner OZ Minerals (ASX: OZL), with OZ sole funding activities at the WMP until the delivery of a Definitive Feasibility Study and decision to mine.
A key cornerstone investor in the placement was Tinci (HK) Limited, a 100 per cent subsidiary of Guangzhou Tinci Materials Technology Co. Ltd, a leading manufacturer and marketer for lithium-ion battery materials.
Tinci Materials was a pioneer electrolyte manufacturer in China for lithium-ion batteries and has established business collaborations with first class international customers.
Tinci Materials is currently conducting a feasibility study on the production of nickel sulphate from nickel sulphide concentrate for the battery industry.
“We are delighted to welcome Tinci (HK) onto our register and look forward to exploring various opportunities between Tinci (HK) and Cassini Resources,” Cassini Resources managing director Richard Bevan said in the company’s announcement to the Australian Securities Exchange.
“This includes discussions with Tinci regarding potential project off-take funding which will be evaluated alongside our other funding options to realise value for shareholders.
“This investment from Tinci (HK) is further recognition of the size, scale and quality of Cassini’s West Musgrave project and the development and operating reputation of our JV partner, OZ Minerals.”
Cassini said the placement was further supported by existing major shareholders who have a history of project development, off-take and financing of battery minerals assets.