Metallica Minerals (ASX:MLM) is preparing to reveal details of a capital raising, with the ASX granting the company a trading halt to organise.
At the start of the month MLM executed a Joint Venture agreement with a private Chinese investor for $7.5 million to develop its Urquhart Point bauxite and mineral sand deposits in Queensland.
Funding will also be allocated towards exploration for other Heavy Mineral Sands and Bauxite deposits on its tenements on the western side of Queensland’s Cape York Peninsula.
Capital from the JV will fully finance construction of Metallica’s proposed Urquhart Point Mineral Sands mine, based on the $6.5 million CAPEX and working capital requirements outlined in the Project Feasibility Study released in June.
The mine will be the first HMS-operation for Metallica to achieve production.
The halt will remain in place until the opening of trade on Monday 18th August 2014, or earlier if an announcement is made to the market.
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