FYI Resources Limited (ASX:FYI) has been granted a trading halt by the ASX ahead of capital raising news.
The trading halt will be in place until the beginning of trade on Monday, June 24, or when an announcement is made to market, whichever occurs earliest.
FYI shares last traded at 5.8 cents.
The company is completing the implementation stage for testing of feedstock for the production of high purity alumina (HPA) from its Cadoux Kaolin Project in Western Australia.
A pilot plant has been designed and engineered to test the HPA production flowsheet developed by FYI to assess the supporting process engineering technology and to optimise and de-risk the flowsheet ahead of full-scale production.
FYI managing director Roland Hill said at the time: “The pilot plant is another key element of our disciplined HPA strategy that will ensure the Cadoux Kaolin Project is de-risked towards production.
“We have arranged to deliver sufficient quantities of HPA product to our potential customers, which will greatly assist in negotiating binding off-take agreements and importantly project funding.”
FYI’s flowsheet design is a collaboration between the company’s project metallurgical manager, IMO and process engineering manager, GR Engineering (GRES).