Kasbah Resources has announced a share placement of 22,000,000 fully paid ordinary shares at $0.15 per share to Pala Investments, to raise gross proceeds of $3,300,000.
The funds raised will be used to undertake further exploration and evaluation activities at the Achmmach tin project and other working capital purposes, as well as to repay the outstanding loan payable to Pala.
Commenting on the Share Placement, Executive Chairman, Evan Spencer stated:
“We are pleased to secure the additional equity funding from our cornerstone shareholder which will enable the Company to continue its value optimisation and project development activities in Morocco.
“In addition, part of the proceeds raised will be used to repay the outstanding loan, de-leveraging and de-risking the Company.
The subscription price values the Company at almost $50 million, which is more in line with the fundamental value of its underlying assets. We believe that further value could be unlocked through the various works both ongoing and planned in 2021, which would cement the Achmmach Tin Project as one of the most attractive tin projects in the world.”