PYX Resources Ltd (LSE:PYX, NSX:PYX) has announced a share placement to a US-based institutional investor L1 Capital Global Opportunities Master Fund for up to US$13.5mln.
Initial funding will be US$4.5mln for 3mln shares (worth US$5mln) to be followed by two further investments, also US$4.5mln each, subject to a mutual agreement between the two parties.
The zircon producer said the funds will allow it to accelerate the ramp-up at its ts Mandiri deposit and to start planning operations at Tisma.
“Timing for this funding could not be better, with premium Zircon prices continuing to grow amid the lack of supply,” said chief executive and chairperson Oliver B. Hasler.
“The financing today further vindicates our decision to dual list on the LSE and provides the necessary funding to accelerate our previously announced growth plans.
“With the receipt of these funds, I look forward to delivering on the next phase of our growth trajectory.”
Shares in PYX were up 9% in morning trading, changing hands at 69.8p.