THE BOURSE WHISPERER: Australian tin exploration and development company Consolidated Tin Mines has secured a major cornerstone investor for the Company’s Mt Garnet tin project, near Cairns in northern Queensland.
The new investor is Hong Kong based investment company, Snow Peak International Investment.
Snow Peak has taken an initial placement of $1.6 million into Consolidated Tin.
Snow Peak’s investment in Consolidated Tin follows a comprehensive two month due diligence program, which included a site visit to the Mt Garnet project by Snow Peak senior representatives.
Snow Peak is a Chinese investment group with interests in property development in Hangzhou in the Zhejiang Province of China, and in Hong Kong.
“We are delighted to welcome Snow Peak as a strong partner in the company, and look forward to a mutually beneficial relationship to take the Mt Garnet tin project through feasibility studies and into production, to unlock the real value in the project for our shareholders,” Consolidated Tin managing director Ralph De Lacey said in the company’s announcement to the Australian Securities Exchange.
The investment is the first tranche of a proposed long-term investment in the company, which is designed to see the Mt Garnet project through to production.
The initial placement is for 20 million shares at eight cents per share, which represents a 17.64% premium to Consolidated Tin’s market price of 6.8 cents at close of trade on 13 September, 2011.
The placement also includes the issue of 10 million listed options to Snow Peak, exercisable at 20 cents each on or before 31st December 2013.
Funds raised from the issue will be used to advance the development of the company’s Mt Garnet tin project and provide working capital.
The shares have been issued after placement approval was granted by shareholders at the company’s general meeting held in August.