Impact Minerals Ltd has received solid backing from two of its largest shareholders as well as boutique investors for its decision to enter the high purity alumina (HPA) market via the Lake Hope Project in Western Australia.
The backing comes in the form of firm commitments to invest $4 million in the company through the placement of about 333 million new shares.
Impact’s two largest shareholders, the Bunnenberg Family Office and ABC Beteiligungen, a subsidiary of Deutsche Balaton AG, an investment company listed on the Frankfurt Stock Exchange, have committed $3.25 million to the placement.
Ignite Equity, a Melbourne-based boutique advisor specialising in cornerstone and lead-managed placements, assisted with the balance of $750,000.
Funds use
Impact will use the funds raised to accelerate the development of the advanced Lake Hope Project, in which it had the option to earn an 80% interest by sole funding and completing a pre-feasibility study.
Impact has exercised the option and will now pay the shareholders of Playa One Ltd, the owners of Lake Hope, $175,000 in cash and a combination of fully paid ordinary shares unlisted options.
Full speed ahead
“We are extremely pleased with the backing of our major investors which is a resounding vote of confidence in our decision to enter the HPA market by developing the advanced Lake Hope Project in Western Australia,” Impact’s managing director Dr Mike Jones said.
“Since announcing the acquisition, our work has confirmed the project's significant potential, and we have now exercised the option to earn an 80% interest by completing a pre-feasibility study.
“With the new funds, we can now accelerate this study and also produce final products that can be provided to potential customers for qualification testing.
“We have already made considerable strides in advancing the project, with just the final set of assays for the recently completed in-fill drilling left to complete our maiden resource estimate by the end of this quarter.
“We then intend to submit a mining lease application in the next quarter in tandem with the feasibility studies.
“We are forging ahead at full speed, and these funds will allow us to maintain our momentum.”
Main focus
The Lake Hope Project has become the main focus of Impact’s activities going forward.
Its unique nature – alumina deposit in a salt lake - allows for very low cost, low environmental footprint, free-dig mining, and straightforward metallurgical processing.
Impact is currently working on a detailed work program, budget and timeframe based on the following goals over the next three to six months:
- Calculation of a maiden mineral resource estimate in accordance with the JORC 2012 code;
- Completion of a scoping study;
- Baseline environmental studies;
- Baseline heritage surveys, continued discussions with the Ngadju First Nations Group in respect of the application for the mining lease;
- Lodgement of an application for a mining lease; and
- Commencement of a pre-feasibility study.