Australian iron-coal company NSL Consolidated has secured $10 million from institutional investors for the funding of phase three expansion at its Kurnool wet iron ore beneficiation plant in Andhra Pradesh, India.
In addition to the raising, NSL has also announced that it intends to change the name of the company (and associated ASX listing) in the next few weeks subject to shareholder approval. The new name will be determined “over the coming weeks”, according to a company statement.
NSL raised the $10 million through the placement of 714,285,714 shares at 1.4 cents per share. Investor First Samuel provided half of the money, committing $5 million. The payment will be paid out in two tranches, the first of which is scheduled for May 17, with the second in June subject to approval.
The plant expansion, budgeted at $8.5 million and commissioned for the first half of 2019, is expected to increase production to 400,000ktpa while also “significantly” improving yields and grades, according to NSL.
Works on the phase three expansion will also include retrofitting of the current phase two plant with improved components; the company will also purchase additional large-scale equipment and appoint project management staff to oversee operations.
“This is a tremendous outcome for NSL and our shareholders, as the company now has the requisite funding in place to complete the phase three expansion of our iron ore operation in India,” said NSL managing director and chief executive officer Cedric Goode.
“The decision to accelerate the expansion of Kurnool has been strongly supported by our existing institutional investors which is very pleasing, and the board would like to take this opportunity to thank our shareholders for their ongoing support.”