13th Jul 2016 08:46
LONDON (Alliance News) - FinnAust Mining PLC on Wednesday said it has been granted an extension to its existing licence covering the Pituffik titanium project in Greenland and will raise funds through a placing to back an accelerated work programme at the site.
FinnAust said it has been granted an extension to its existing licence at Pituffik which will include all the minerals within the shallow marine environment at the site. It said this is the first marine-based exploration licence for minerals to be granted by the self-rule government of Greenland.
The extension includes marine extensions of the titanium rich black sands area, FinnAust said. Modelling suggests this area contains ilmenite-bearing sediments similar to those on the active and raised beaches within the Pituffik project, but in much larger volumes.
In order to fund an accelerated work programme at the project following the licence extension, the company said it has raised GBP500,000 by placing 10.0 million shares at 5.00 pence per share. FinnAust shares were up 7.3% to 5.50p on Wednesday morning.
"This is a watershed moment. We now control all prospective sediments both on and offshore at Pituffik," said FinnAust Chief Executive Roderick McIllree.
"With both the licence and the funds in hand, we are positioned to rapidly undertake initiatives to help us towards delivering a proof-of-concept bulk sampling campaign in 2017 which is also expected to benefit the company by delivering cash flows," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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