Aus Tin borrows an extra $1 million after projects hit with delays
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Construction delays at the Granville mine in Tasmania have “impinged” on Aus Tin Mining’s forecast cash position, prompting it to borrow an extra $1 million for working capital purposes.
Aus Tin (ASX:ANW) has boosted its $1 million Convertible Security Facility Agreement (CSFA) with the Lind Partners-managed Australian Special Opportunity Fund.
The explorer told investors that it did evaluate a share purchase plan but given “broader equity market conditions” (i.e. – it’s rough out there) the Lind facility was considered “competitively priced with the lowest delivery risk”.
“If appropriate the Company may revisit the composition of its working capital requirements, including alternative forms of capital, when equity market conditions improve,” it said.
Pre-production development works at the historic Granville tin mine in Tasmania were initially hampered by “an extended period of wet weather”.
To prevent further delays at Granville, Aus Tin will now obtain certain services directly, instead of sub‐contracting them out via its civil and mining contractor.
It will also pull equipment off its Taronga Tin project in New South Wales – which is currently in the pre-production approvals process — to get Granville back on schedule.
Also, significant drilling issues at Aus Tin’s Mt Cobalt/Pembroke nickel‐cobalt‐copper project in Queensland could see the program postponed.
A 450-metre hole to target a deeper magnetic and conductivity target at Pembroke has hit problems, with the company recently engaging an independent drilling consultant to provide advice.
“The Company is considering options for the remainder of the program but given the over‐run at Pembroke and increasingly unsettled weather over the summer period, it may postpone elements of the Mt Cobalt program,” the company told investors.