FYI Resources Ltd (ASX:FYI) (FRA:SDL) has attracted an initial strategic investment from Luxembourg-based private equity group GEM Global Yield LLC SCS (GEM).
GEM intends to provide long-term support and shareholder stability to FYI for the development of its high purity alumina (HPA) project in Western Australia.
This support comes as GEM sees increasing shareholder value as FYI progresses the development of its HPA project strategy.
Placing
The initial investment is via a placement of A$3.13 million through the issue of 9.3 million shares under the company’s A$80 million capital commitment facility with GEM.
This is the first drawdown on the GEM financing facility, which was put in place to provide FYI with capital support for the development of the company’s HPA project.
A total of 9.3 million fully paid ordinary shares will be issued at a price of A$0.3367 each, calculated according to the terms of the capital commitment facility, under the company’s current ASX listing rule 7.1A placement capacity to raise gross proceeds of A$3,131,310.
Proceeds from the share issue will be used to advance FYI's HPA project and costs of the issue.
‘Outstanding’ results from HPA pilot plant
Last week, FYI’s HPA pilot plant trial conducted in collaboration with Alcoa of Australia Ltd delivered results described as "outstanding", consistently achieving purity levels higher than 99.998% aluminium oxide.
The analytical results suggest the trial achieved purity levels higher than anticipated due to progressive enhancements to the flowsheet and improvements to operational procedures from previous trials, including the use of an alternative feedstock supplied by Alcoa.
FYI considers the outcome to be of significant relevance in improving project economics for potential commercial production and a key condition to the Alcoa joint venture memorandum (MoU) has been achieved.