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- Australian Bauxite (ABX) has called a two-day trading halt today as it gets ready to tap investors for some fresh funding through a capital raising plan
- The trading halt will last until Monday, May 24, unless the mining company decides to announce the details of the raise before then
- At this stage, Australian Bauxite has not revealed how much it plans to raise, how it will raise the funds and for what the money will be used
- ABX controls several bauxite deposits in Queensland, New South Wales and Tasmania, and the company has been mining and processing bauxite since 2014
- Bauxite is a sedimentary rock with high aluminium content and it is the chief commercial ore of aluminium
- ABX had just over $930,000 worth of cash in the bank at the end of March after spending around $420,000 on operating activities over the March quarter
- Whether the upcoming capital raise is a simple balance-sheet booster or if something bigger is in the works for ABX is still unknown
- Shares in Australian Bauxite last traded for 12 cents each on Wednesday, May 19
Australian Bauxite (ABX) has called a two-day trading halt today as it gets ready to tap investors for some fresh funding through a capital raising plan.
The mining company did not specify how much it plans to raise or exactly how it will raise the funds, nor did it say how it plans to use the cash boost.
At this stage, the details of the raise are set to be announced on Monday, May 24, though the company could make the announcement about the raise before then. The trading halt will lift when the details of the raise are revealed.
Australian Bauxite has discovered several bauxite deposits in Queensland, New South Wales and Tasmania, and has been mining and processing the material since 2014.
Bauxite is a sedimentary rock with high aluminium content. The rock typically consists largely of hydrate alumina and, as such, is one the chief commercial ores of aluminium.
However, as well as simply mining bauxite, ABX has been developing new technologies for the material through its subsidiary Alcore. Among these is a process to chemically refine bauxite and aluminium smelter wase into aluminium fluoride, which is an important material for use in aluminium smelting.
Aluminium fluoride is also being investigated for potential use in lithium-ion batteries.
Taking a look at ABX’s latest financial report, the company had just over $930,000 worth of cash in the bank at the end of March after spending around $420,000 on operating activities over the March quarter.
At this rate of spending, this gives ABX just over six months worth of cash in the bank as of March 31.
However whether the upcoming capital raise is a simple balance-sheet booster or if something bigger is in the works for ABX is still unknown.
Shares in Australian Bauxite last traded for 12 cents each on Wednesday, May 19. The company has a $18 million market cap.
