It’s been a week where the brakes have definitely been on capital raising, which is not surprising given the market’s general decline.
Exceptions, however, include Almonty Industries (AII) which announced it raised just shy of $4.8 million required so it can secure a $109 million loan from a German Bank to fund its rebuild of the Sangdong tungsten mine in South Korea.
In order to be granted the financing facility by KfW Development Bank this month, Almonty needed to pay outstanding fees.
President and CEO Lewis Black today also admitted costs for the project had jumped five per cent, but he said that had been accounted for and long lead time milling and flotation equipment was ordered last year.
“This enabled us to capture pricing and delivery times on significantly more favourable terms than if ordered today,” he said.
“However, delivery dates have been extended by two months with global shipping delays being the main issue.
“But, it will not delay work at the site as we have merely adjusted our schedule to bring forward areas that are manufactured or planned in South Korea and pushed installation of imported items not yet in country to compensate for the shipping delays.
“On the back of this we have updated our commissioning date towards the end of Q2 2023.”
The value of the company’s shares has fallen nearly 20 cents over the past month. Almonty shares were trading at 85 cents as of 1:52 pm AEST. Almonty’s market cap sits at $177.5 million.
Meanwhile, 3D metal printer, Amaero International (3DA) claims it’ll be cash flow positive as soon as its titanium alloy powder plant is commissioned — which Executive Director Stuart Douglas told the Deal Room would be in the next financial year.
“We’ll be producing around about $10 million of revenue per quarter, so we’re excited about that,” Mr Douglas said.
“We’ve seen very uncertain markets, obviously, in the last couple of weeks, but to be able to go into a trading halt and to do the raise at the exact same price without discount, we’re very, very happy with that.”
Mr Douglas said the global demand for titanium is spiking as Russia’s invasion of Ukraine reduces supply.
Amaero raised a total of $11 million — $8.2 million from institutional investors and the rest from Pegasus Growth Capital, which was leading the raise. Pegasus’ Managing Partner Hank Holland will join the Amaero Board.
The company has a market cap above $45 million and the value of shares edged up today at 22.5 cents as of 2:00 pm AEST.
Point-of-sale consumer financing player Payright (PYR) confirmed it’s all systems go for its $125 million warehouse facility and it’s completed the recently announced $9.5 million capital raise.
The warehouse facility is to be provided by Goldman Sachs. The moves were approved at an Extraordinary General Meeting and Payright intends to grow its scale.
Payright has a market cap just over $11.5 million and shares were trading at 13 cents as of 2:57 pm AEST.
The IPO drought will break on Monday, with the listing of Southern Cross Gold. It’ll debut under the ticker code SXG. It has four exploration projects across Victoria and Queensland and has raised $10 million through its IPO with shares issued at 20 cents.