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Rusina Mining boosts cash balance in H1 2009 with fundraising

Last updated: 22:01 16 Mar 2010 AEDT, First published: 23:01 16 Mar 2010 AEDT

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Rusina Mining (ASX: RML; AIM: RMLA) has focused its efforts on developing projects with shorter pay-off period in the six months to 31 December 2009, while raising funds to improve its cash balance.

Rusina Mining made no revenues after making A$68,687 in H1 2008 and posted losses of A$2.4 million compared to a loss of A$1.4 million for the equivalent period of the previous year, bringing losses per share up to A$0.72 compared to last year’s A$0.59.

Current cash and cash equivalents stood at nearly US$5 million compared to A$2.9 million at 31 December 2008, while total current assets increased from A$19.2 million to A$21.97 million. During the period, Rusina Mining has raised some A$5.7 million through a placing.

The company undertook the minimum required expenditure in its early phase exploration projects, intending to concentrate on the projects that are most likely to achieve early cash flows.

Rusina has been focused on progressing the Acoje nickel heap leach feasibility study with the successful completion of the trial heap leach facility.

The nickel heap leach trial pad and pilot plant were opened on 9 December 2009. The trial heap will be constructed at the same height as the full commercial operation and is designed to prove the heap percolation and leach rates. All electrical work on the agglomerator, binder plant and associated monitoring equipment has been completed and the agglomerator and associated conveyers are now fully commissioned. The downstream processing plant shed was erected in post-period, while the resin in pulp, ion exchange and centrifuge will occur in Q1 2010.

Leaching will commence once the pad has been stacked and irrigation pipes placed over the heap.

The project is being funded by JV (joint venture) partner European Nickel (AIM: ENK), which is spending US$10 million to earn a 40% interest. The two businesses entered into a merger agreement after the end of the period.

Rusina is looking to undertake further drilling which seeks to move additional JORC resources from Inferred to Indicated status, also aiming to lower the current forecast cash cost of US$1.60/lb and increase the end payable product. This will lengthen the proposed mine life and increase the Net Present Value (NPV) from its present US$375 million.

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