Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Cradle Resources resumed share trading on Tuesday, after receiving the first tranche of its investment agreement with Tremont Investments and completing a share placement.
Earlier this month, Cradle reached an agreement with Africa-focused Tremont under which Tremont would earn a 50% interest in the Panda Hill niobium project, in Tanzania, by investing some $20-million.
The funds would be used to advance a prefeasibility study on the Panda Hill project.
Cradle said on Tuesday that it had now received the first $5-million under the funding agreement.
Furthermore, the company had placed some 18-million shares, at a price of 20c a share to raise a further A$3.6-million. The placement was marked to institutional and sophisticated investors in the UK and Australia.
The proceeds from the placement would be used to pay existing creditors and to provide working capital.
Meanwhile, Cradle would also allot more than 19.5-million ordinary shares and 787 500 performance rights. The conversion of the performance shares was conditional upon the completion of a scoping study, which had been satisfied.
The Panda Hill project currently has a mineral resource of some 56-million tonnes, grading 0.5% niobium, for 280 000 t of niobium pentoxide. The project is covered by three granted mining licences totalling 22.1 km2, with the licences due for renewal in November 2016.
The definitive feasibility study for Panda Hill would likely be completed once Tremont has invested $15-million.