FYI Resources has received firm commitments to raise approximately AU$811,000 (before costs).

The capital raising will be through the issue of approximately 16.22 million shares at 5 cents per share with one attaching unlisted option for every two shares issued (Placement), which is supported by Regal Funds Management for their full pro-rata of 12.9 per cent. Foster Stockbroking was the lead manager to the issue.

The Placement has received strong support from local and international investors including a number of existing major shareholders. The funds raised from the Placement will be used for continued development of FYI Resources’ high purity alumina (HPA) strategy, including operation of the pilot plant to produce product for customer qualification (test work), on-going project development at Cadoux and completion of the bankable feasibility study (BFS) and general working capital.

FYI is progressing a very active development path for its HPA strategy. Currently undertaking bankable feasibility studies (BFS) and pilot plant test work of the Cadoux kaolin project feedstock, FYI is achieving excellent technical results from its R&D program which should lead to positive project economics. The pilot plant, currently being commissioned, will provide essential product processing data that will be important in refining the BFS economic case.

Importantly, as stated by the Company, the pilot plant will “provide simulated ‘production’ generated HPA in sufficient quantities so that interested parties can trial the alumina for product qualification specific to their individual requirements and applications”. This feedback will allow FYI to tailor the end product (through further R&D) to suit each customer’s needs.

Source: www.fyiresources.com.au