Gippsland Limited
Gippsland focuses on world-scale projects which have been over-looked by major resource groups. Projects which have undergone detailed exploration and which have the potential to be brought into production quickly are a prime target for the Company. Gippsland's success in this area is due in part to the Company's philosophy of entering into equitable joint venture arrangements with overseas nationals. The Company's prime assets are the 40 million tonne Abu Dabbab and the 98 million tonne Nuweibi tantalum-tin projects located in the Central Eastern Desert of Egypt, adjacent to the western shore of the Red Sea.
Gippsland raises A$3.2m to advance Abu Dabbab Tantalum Project
Friday, October 01, 2010 by Jeff Coote
Western Australia based Gippsland (ASX: GIP, FRA: GIX) has received firm commitments from institutional and sophisticated clients of Patersons Securities Limited for the placement of 80 million fully paid ordinary shares at $0.04 per share to raise $3.2 million.
The proceeds will be used to progress its flagship 44.5 million tonne Abu Dabbab Tantalum-Tin-Feldspar Project in Egypt and for working capital.
The company is no longer in a trading halt on the announcement and settlement is expected next week.
Gippsland has indicated that the detailed engineering and construction that was planned to commence by 2010 with commissioning in 2012, is now expected to commence during the first quarter of 2013 due to delays in the HC Starck offtake negotiations.
The shortage in tantalum supply is expected to continue through to at least 2013 by which time Abu Dabbab is expected to largely satisfy demand with its initial production of in excess of 650,000 pounds of tantalum per year.
Interestingly, Abu Dabbab is one of the very few significant tantalum deposits in the world in which the mineralisation is not plagued by excessive contents of niobium and/or radionuclides. Revenues can be generated from tantalum co-products tin and feldspar.
GIP last traded at 6 cents per share.
No investment advice
The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.
You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.
From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.
