THE BOURSE WHISPERER: FYI Resources (ASX: FYI) has plans to spend a payment of $300,000 it has received advanced against an expected 2019 R&D tax rebate.
FYI Resources said the funds would be directed towards the development of the pilot plant for the company’s Cadoux kaolin project in Western Australia.
The company said this would materially progress its high purity alumina (HPA) strategy of fully integrated, low-risk, low-cost production of high purity 4N (99.99%) and 5N (99.999%) alumina products.
“The funding allows us to achieve a crucial step in the support of our long term HPA strategy,” FYI Resources managing director Roland Hill said in the company’s announcement to the Australian Securities Exchange.
“The development of the pilot plant and HPA product development will greatly assist product market development with end users and technical reviews.
“The pilot plant will also provide excellent operating parameters for the production process.”
FYI has bankable feasibility testwork and an economic review (including the pilot plant development) continuing to advance as planned.
The company said it has been encouraged by the technical advances achieved by its development team in terms of the efficiency of the flowsheet as demonstrated in the achievement of the 5N purity announced earlier this month.
FYI Resources believes the pilot plant project will greatly de-risk complex technical challenges ahead of commercial production and is consistent with the company’s strategy of delivering a low-risk, high margin project.