ASX-listed tin junior Kasbah Resources has announced the launch of a fully underwritten accelerated non-renounceable rights issue to raise approximately $5.2 million.Kasbah Resources recently commissioned AMC Consultants to conduct an independent technical review of the Morocco-based Achmmach project. This construction readiness review assists in ensuring the optimal route to a commencement of construction.
This review has now been completed and not only were there no fatal flaws identified, a small number of areas were identified as offering the potential to both lower the overall risk of the project and improve the bankability of the project.
Whilst work has now commenced on these initiatives, the funds raised in this Entitlement Offer will allow final technical work on the Achmmach project to be completed, resulting in an updated definitive feasibility study which then will allow Kasbah Resources to substantially progress funding discussions and ultimately facilitate a construction decision.
Funds will also be used for working capital and to commence work required as part of the project construction financing.
“This is an exciting time for Kasbah Resources. Our Achmmach project is now in the final stages of optimisation and we expect to commence work on funding initiatives for construction at the conclusion of these activities,” says Kasbah Resources CEO Richard Hedstrom.
"The board believes that its current cash reserves and the funds raised from the Entitlement Offer will provide the company with sufficient funding to complete the optimisation of the DFS in parallel with progressing the construction financing package, both of which are key milestones to reach a decision to mine.”
“We thank our major shareholders Pala Investments and African Lion for their on-going support of the company by committing to take up their entitlement in full as part of the Entitlement Offer, and, in the case of Pala Investments, for sub-underwriting a portion of the retail component of the Entitlement Offer at no fee.”