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Hazelwood raises cash to ramp up production

27th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Ferrotungsten miner Hazelwood Resources would raise about A$7-million in a share placement and share purchase plan (SPP) to accelerate the ramp-up of production at its ATC plant, in Vietnam.

About A$5-million would be raised by a share placement to domestic and international institutional investors, with the shares priced at A$0.038 each. A further A$2-million would be raised under a SPP for existing shareholders, with shares also priced at A$0.038 each.

Hazelwood MD Terry Butler-Blaxell said on Wednesday that funds raised would be applied primarily towards the acquisition of tungsten feedstock to ramp up production at the ATC ferrotungsten project, and for working capital.

“Product quality and production efficiency is continuing upwards. The ongoing ramp-up of production into this third campaign and beyond is set to deliver strong operating cash flows.”

He noted that the completion of the placement would put Hazelwood in a stronger financial position to meet its ramp-up schedule.

Stage 1 of the ATC plant had a nameplate capacity of 4 000 t/y of ferrotungsten alloy, equivalent to 3 000 t/y of contained tungsten. A second stage, if completed, would have sufficient capacity to supply around 25% of the world’s ferrotungsten.

Edited by Creamer Media Reporter

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