ALTURA MINING LTD (OTCMKTS:ALTAF)
Shares of ALTURA MINING LTD (OTCMKTS:ALTAF) gained 7.14% after the exploration and development company said it is funded to a tune of $110 million, enough to complete the construction and commissioning of the Pilgangoora Lithium Project. Completion of the funding package marks the final prerequisite as the company moves to begin Lithium production.
Pilgangoora Lithium Project
ALTURA MINING LTD (OTCMKTS:ALTAF) is trading in an uptrend after an impressive run that began in July. The stock is up by more than 100% for the year. Renewed investor interest was spurred by the production start at the Pilgangoora Lithium project
Early this month, the Lithium developer announced plans to raise A$26 million through a share placement to institutional and sophisticated investors. The company intends to issue 136.8 million shares at a price of 19 cents each. The offering price represents an 8.44% discount to ALTURA MINING LTD (OTCMKTS:ALTAF) 30-day volume-weighted average price.
“We received a strong level of interest from international investors in how advanced the Altura lithium project already is, and how the project could be expanded to meet growing global demand for lithium,” said Altura MD, James Brown.
Construction of the Pilgangoora Lithium Project is more than 50% complete with first production expected only a few months away. ALTURA MINING LTD (OTCMKTS:ALTAF) has also approved a Stage 2 expansion study aimed at increasing production from start capacity of 220 000 t/y to 450 000 t/y. Results from the study are expected early next year.
Expansion of the Project is attractive as increased mining volumes can be accommodated with a second mining shift without having to increase ancillary infrastructure.
Revised Production Estimates
Recent studies of the Pilgangoora Lithium Project have resulted in an upgrade in Lithium Ore Reserve and Mineral Resource estimate. The project now has a revised mineral resource estimate of 44 million tones at 1% Li2O and 441,000 tons of Li2O. It represents an increase from the previous estimate of 40.3 million tones.
The change in mineral estimate is because of infill and confirmatory drilling that has improved the geological interpretation of the deposit thus reducing the risk of categorization.
“While the increase is modest by total number it is extremely significant given the inclusion of Proved and Measured tones and how that strengthens our understanding of the geology of the deposit, particularly over the first five years of operation,” ALTURA MINING LTD (OTCMKTS:ALTAF) mining in a statement.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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