THE BOURSE WHISPERER: FYI Resources (ASX: FYI) has received commitments to raise approximately $811,000 through the issue of approximately 16.22 million shares at five cents per share with one attaching unlisted option for every two shares issued.
FYI Resources said the placement had received support from Regal Funds Management for its full pro rata of 12.9 per cent, while Foster Stockbroking acted as lead manager to the issue.
The company declared the placement received strong support from local and international sophisticated and professional investors including existing major shareholders.
The funds raised will be used for continued development of FYI’s high purity alumina (HPA) strategy, including operation of the pilot plant to produce product for customer qualification (test work), on-going project development at the Cadoux project and completion of the bankable feasibility study (BFS) and general working capital.
FYI informed the market that its High Purity Alumina (HPA) project development is progressing along an active development path for the company’s HPA strategy.
FYI is currently undertaking bankable feasibility studies (BFS) and pilot plant test work of the Cadoux kaolin project feedstock, from which it is achieving excellent technical results from an R&D program which it believes should lead to positive project economics.
“The pilot plant, currently being commissioned, will provide essential product processing data that will be important in refining the BFS economic case,” FYI Resources said in its ASX announcement.
“Importantly, the pilot plant will provide simulated ‘production’ generated HPA in sufficient quantities so that interested parties can trial the alumina for product qualification specific to their individual requirements and applications.
“This feedback will allow FYI to tailor the end product (through further R&D) to suit each customer’s needs.”
FYI is positioning itself to be a substantial producer of 4N and 5N HPA to meet the rapidly developing high-tech product markets.
The foundation of the company’s HPA strategy is the superior quality aluminous clay (kaolin) deposit at the Cadoux project and positive response that the feedstock has to the company’s moderate temperature, atmospheric pressure HCl flowsheet.