World Titanium Resources raises $3.25M
World Titanium Resources (ASX: WTR) has raised $3.25 million through a placement for 25 million shares priced at $0.13 each.
Proceeds from the placement will be used for general corporate purposes.
GMP Securities Europe which was the sole lead manager for the placement will be issued 1.5 million options exercisable at $0.13 for a period of 24 months from the closing of the placement as part compensation for its role.
The placement is expected to close with the shares on or around 8 August 2013.
WTR had $2.2 million in cash as of 30 June 2013.
Ranobe Mine Project
Shareholders in the company are poised to decide on a revised MoU with China's Sichuan Lomon Titanium for funding of the Tier 1 Ranobe mineral sands mine in Madagascar.
Under the revised MoU, Lomon will contribute the first US$200 million of the capital required to develop an 800,000 tonne per annum ilmenite mine at Ranobe.
If required, capital in excess of US$200 million and up to US$300 million will be provided by project debt which will be secured by 100% of the project’s assets. The project debt will be serviced from Lomon’s share of operating cashflows.
Any capital expenditure above US$300 million will be jointly funded by WTR and Lomon.
For providing the funding Lomon will acquire a 50% interest in the Ranobe mining and exploration licences and WTR’s other Toliara Sands Project exploration licences.
The company is also continuing offtake discussions with potential customers for ilmenite and zircon rich concentrate and is continuing pre-development engineering.
This is primarily focused on finalising the design for the haul road, causeway and jetty. The proposed designs for this infrastructure will have a capacity well in excess of the 800,000tpa of ilmenite targeted in the impending JV with Lomon.
Geotechnical drilling at the proposed storage facility and onshore sections of the jetty was completed during the quarter. A detailed design for the jetty has been completed and is currently being costed. The updated cost estimate for detailed design for the road and causeway is also being prepared.
Drilling and Trial Mining
Samples from the 362 hole, 8000m program at Ranobe are being analysed and the results will be incorporated into an updated Resource and Reserve statement during the current quarter.
A large sample (5-6 tonnes) of HMC from the trial mining completed in the December 2012 was shipped to Perth during the June quarter 2013. During the current quarter this sample will be used for further trials of the selected flow sheet design.
Definitive Feasibility Study
The updated Resource and Reserve, jetty and road capital cost estimates will be combined with the latest processing trial results and updated operating cost estimates and the Definitive Engineering Study, that was completed in August 2012, will be updated to a Definitive Feasibility Study – for a 407,000tpa ilmenite operation, during the current quarter.
Environmental and Social Impact Assessment
Coastal and Environmental Services, a South African environmental consultancy with extensive experience in mineral sands and other mining projects in Africa continued to advance the environmental approval process for Ranobe.
During the June 2013 quarter a draft Environmental & Social Impact Assessment (ESIA) and Social & Environmental Management Plan (SEMP) were submitted to the Office National pour L’Environment (ONE) and the public consultation process for the ESIA was completed.
Based upon feedback from the public consultation and from ONE the final ESIA and ESMP are being prepared for submission to ONE in the current quester. Once submitted the final approval process will commence and is expected to take up to 6 months to complete.
Port Approval and Surface Rights
The company also continues to progress the preferred option for licencing a private port.
During the period, the identification of traditional owners and users of the land for the proposed mine site and port was completed. Surveying work is continuing on the proposed road. Once all owners and users are identified, the Company will formalise access agreements with them.
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