Pilbara Minerals (ASX:PLS) has completed a $920,000 share placement supported by existing and new investors, to underpin its growth strategy as a tantalum producer in the Pilbara region of Western Australia.
PLS is moving towards start-up of its first tantalum mine, Tabba Tabba, a 50-50 joint venture with Nagrom Mining.
The company has received firm commitments from professional and sophisticated investors for 61.3 million shares at $0.015, including a $500,000 investment by a substantial cornerstone investor.
PLS also intends to undertake a Share Purchase Plan to existing shareholders.
Proceeds will be used to complete construction of the processing facility for Tabba Tabba, located 75 kilometres from Port Hedland, and secure its transition to production in October 2014.
In addition, the funds raised will be used for exploration and resource development across Pilbara's three strategic metals projects in the Pilbara region.
Drilling will aim to extend the mine life at Tabba Tabba beyond the current 18 months defined by the Feasibility Study.
The Strelley Tantalum Project is expected to become PLs' second mining operation in the Pilbara, and a maiden JORC Resource will be completed shortly.
Drilling will also aim to grow the resource base at the recently acquired Pilgangoora Tantalum-Lithium Project, located adjacent to Altura Mining's Pilgangoora lithium resource.
The market outlook for tantalum is very strong due to its use in electronics, especially for capacitors used in tablets, smart-phones, laptops and other miniature electronics where long battery life is required.
Tabba Tabba will be well placed to meet this demand, being capable of supplying up to 10% of global consumption.
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