ChemX Materials has secured a funding package worth up to $6 million from United States-based investment firm Mercer Street Global Opportunity Fund.
Management says the fresh funding will go towards the company’s high-purity manganese (HPM) play on South Australia’s Eyre Peninsula and its high-purity alumina (HPA) project in Perth’s southern suburbs. The company has also revealed it has promoted chief operating officer Peter Lee to the role of chief executive officer.
ChemX says that under its new funding agreement, it will initially receive $500,000 for the issue of 600,000 convertible notes. Subject to shareholder approval, there will then be a second and third tranche available as part of the deal. The second tranche will make $1.7 million available for 2.04 million convertible notes, before a third and final tranche of $3.8 million for 4.56 million convertible notes.
The facility can be drawn down over a 12-month period and there is no obligation on the company to lean further on the facility after the first tranche. Management says it decided on issuing convertible rights as its most favourable form of capital raising, largely based on its flexibility.
Some of the money has already been earmarked for its HPM project in SA for metallurgical testwork and flowsheet development as it looks to produce 4N (99.9 per cent) HPM, while also continuing its aggressive exploration campaign on the picturesque Eyre Peninsula.
Complementary to the eye-catching scenery, the project is also close to SA’s major industrial and mining hub of Whyalla.
Another target of the funding will be ChemX’s patented “HiPurA” HPA project in Western Australia. The company recently approved a resized pilot plant following flowsheet improvement and optimisation from the operation of its micro plant.
Its game-changing method differs significantly from the aluminous clay-based processes through its use of a chemical feedstock that is independent of mine production, significantly cutting down on development timeframes, in addition to being modular and scalable.
Management believes it will be able to build production facilities for battery separator manufacturers or synthetic sapphire producers on the same site.
With a clear path ahead, ChemX has appointed Mr Lee to steer the ship as chief executive officer.
As a chemical engineer, Mr Lee worked in senior leadership roles with heavy-hitters such as BHP and Roy Hill and prior to moving to ChemX, he was with WSPGolder. He also has experience with several commodities including alumina, iron ore, copper and electrochemical processes.
With plenty on the hotplate and a funding stream to make things go pop, Mr Lee looks set to hit the ground running as ChemX positions its projects to go to the next level.
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