Black Mountain Resources (ASX:BMZ) has raised $1 million via a placement of shares at $0.04 each to new cornerstone investor, Investmet Limited, headed by Michael Fotios.
Michael Fotios is a well-regarded and experienced resource sector investor and has created substantial shareholder value through managing and investing in a number of ASX-listed companies.
These include Eastern Goldfields (ASX:EGS), General Mining Corp (ASX:GMM) and Northern Star Resources (ASX:NST).
Black Mountain’s shares were last trading 43% higher intra-day, at $0.30.
The funds from this placement will be deployed to deliver operational improvements at Black Mountain’s Namekara Vermiculite Mine in Uganda.
Investmet has conducted numerous site visits to the Namekara Mine and undertaken extensive due diligence over the project and the company.
It has identified key areas of improvement in mining and processing activities that will lead to a major reduction in operating costs.
Moreover, Investmet has undertaken a review of Namekara’s overall geology and pointed out that further value can be realised from broader exploration initiatives.
Importantly, the demand for Black Mountain’s large and medium grade vermiculite continues to grow across multiple international markets.
Sales are materialising from the company’s established stockpiles located at warehouse facilities in Uganda and Europe.