Join our daily newsletter At The Bell to receive exclusive market insights
- Classic Minerals (CLZ) has received some parts of the modular Gekko processing plant for its Kat Gap Gold Project
- The WA-focused gold explorer and developer is expecting delivery of the final components of the plant in November
- Classic has paid $1.3 million for the parts already received using cash from a recent security purchase plan
- The company will pay approximately $2.3 million upon delivery of the remaining components and hasn’t ruled out the need to undertake a further capital raise
- Shares have been trading 25 per cent lower at 0.2 cents at 12:40 pm AEST
Classic Minerals (CLZ) has received some parts of the modular Gekko processing plant for its flagship Kat Gap Gold Project in WA.
In July, the company announced it would purchase a Gekko gravity concentration processing plant with 30 tonnes per hour processing capacity for Kat Gap.
The modular plant is scalable, allowing for possible increases in throughput based on the outcome of further exploration, testwork and resource definition programs at the project, located 120 kilometres southeast of Southern Cross.
The WA-focused gold explorer and developer will pay a total of $3,990,800 including GST for the Gekko plant and has already paid $1.3 million for the components received.
This payment was funded by the company’s recent security purchase plan which raised just shy of $4 million.
The remaining $2,690,800 will be paid following delivery of the remaining parts of the processing plant. The delivery is planned for the first week of November, however, will only occur when the company has sufficient funds.
Classic Minerals has indicated it intends to pay for the remaining parts with cash from the security purchase plan, and should it be required, from an additional capital raise.
Shares have been trading 25 per cent lower at 0.2 cents at 12:40 pm AEST.
