FYI Resources has arranged $80 million in equity financing to progress its high purity alumina (HPA) production facility in Western Australia.
FYI is striving to reduce the cost of HPA production by using aluminous clay from its Cadoux kaolin resource in Western Australia. The current most common method is hydrolysis of aluminium alkoxide.
The company noted that the financing paves the way for FYI to progress towards construction and potentially operation of the fully integrated HPA processing plant.
With the development plan under way, FYI could position itself to be a significant producer of high purity alumina (4N or HPA) in the rapidly developing LED, electric vehicle, smartphone, television screens and other high-tech product markets.
FYI has also provided results of its definitive feasibility study, which confirmed the company’s 2018 project pre-feasibility study results.
Based on the study, FYI is expecting to produce up to 8000 tonnes per annum of HPA, delivering a net present value of US$506 million ($778 million) for a 25 year project life.