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- Silica sands explorer Metallica Minerals (MLM) calls a two-day trading halt as it gets ready to launch a fresh round of fundraising
- The company is yet to reveal how much it plans to raise or for what it will use the new funds, but these details should be announced by Wednesday, February 16
- The company is busy working to complete a pre-feasibility study (PFS) and a resource upgrade for its flagship Cape Flattery Silica Sands project near Cairns in North Queensland
- According to its latest quarterly report, Metallica had around $5.1 million in the bank at the end of December after posting negative net quarterly cashflows of $1.2 million
- Shares in Metallica Minerals last traded for 2.9 cents each on Friday, February 11
Silica sands explorer Metallica Minerals (MLM) has called a two-day trading halt as it gets ready to launch a fresh round of fundraising.
At this stage, the company has not yet confirmed how much it plans to raise or for what it will use the funds. The details of the capital raise are slated to be announced before the start of trade on Wednesday, February 16, at which point Metallica’s trading halt will lift.
The company is busy working to complete a pre-feasibility study (PFS) and a resource upgrade for its flagship Cape Flattery Silica Sands project near Cairns in North Queensland.
According to Metallica’s latest quarterly report, it had around $5.1 million in the bank at the end of December after posting negative net quarterly cashflows of $1.2 million.
This means at this rate of cash burn, Metallica Minerals had roughly a year of funding left in the bank.
The company did not specify whether future expenses were expected to ramp up as it took on the work needed to complete the Cape Flattery PFS, along with metallurgical studies and an associated resource upgrade in the area.
As such, whether the upcoming capital raise is a simple balance sheet booster for Metallica or whether something bigger is in the works for the company is, at this stage, still uncertain.
Shares in Metallica Minerals last traded for 2.9 cents each on Friday, February 11. The company has a $16.5 million market cap.
