Raising funds and Tax Refunds
THE FUND RAISER: Bit of a mix this week with some companies raising funds, while others receive R&D rebates or government milestone payments.
$1.2 million in Government grant milestone payments
Carnegie Wave Energy (ASX: CWE) received $748,849 from the Australian Government for progress on the desalination plant, foundations, onshore power plant and pipelines of the Perth wave energy project; with an additional $451,480 received from the Western Australian State Government.
Carnegie received $470,159 for completion of three milestones from the Australian Government under its grant from the Australian Renewable Energy Agency (ARENA) Emerging Renewables Program.
The milestone payments were awarded for Carnegie’s progress on the project’s foundation system, onshore plant and pipeline.
Carnegie also received a quarterly grant payment of $278,690 as part of a $1.27 million AusIndustry grant that supports the design, construction and operation of a CETO wave powered desalination pilot plant which will desalinate seawater to produce freshwater.
Raising $7 Million to accelerate ramp-up of ferrotungsten production
Hazelwood Resources (ASX: HAZ) announced it has resolved to raise up to $7 million through a placement of fully paid ordinary shares and a Share Purchase Plan to accelerate the continued ramp-up of Ferrotungsten production at the company’s ATC Plant in Vietnam.
Hazelwood said it has received strong support for the placement from existing shareholders as well as new domestic and international institutional investors to raise up to approximately $5 million at 3.8 cents per share.
In addition, the company will provide all eligible shareholders with the opportunity to apply for Shares at the same price as investors under the Placement, to raise up to an additional $2 million.
The funds raised under the Placement and the Share Purchase Plan will be applied primarily towards payment for the acquisition of tungsten feedstock used during the ramp-up of production at the ATC Ferrotungsten project in Vietnam, and for working capital.
R&D tax refund
Royal Resources (ASX: ROY) has received tax rebates of $2.6 million, including interest, and just under $1.3 million in relation to activities it has undertaken that are deemed Research and Development during the 2011/2012 and 2012/2013 financial years.
Royal explained it had undertaken a good deal of work in assessing the metallurgical properties of the company’s proposed Razorback premium iron project concentrate product which, because of it being sourced from an emerging iron ore district, is deemed to be innovative.
The company said the R&D refund, totalling $3.88 million before costs, will strengthen its cash position, enabling it to progress work on the Razorback project.