FYI Resources Ltd (ASX:FYI) has been taking large strides on its path to producing high purity alumina (HPA) in Western Australia and will be outlining recent progress and upcoming plans during a virtual conference next week.
The company’s managing director Roland Hill will be making an online presentation to shareholders and investors at the NWR Virtual Resources Conference at 9.30am AEST on Thursday, May 7.
Event is free
This event organised by NWR Communications is free and investors can register online to view the presentation – https://us02web.zoom.us/webinar/register/WN_ijxl6RK1TuC14mmVlOUEjw.
A corporate update and definitive feasibility study (DFS) presentation will be released to the market ahead of the conference.
Since close on Monday, shares have risen from 4 cents to a high of 5.8 cents today.
Last month the company released a positive definitive feasibility study (DFS) for its Cadoux kaolin and Kwinana high-purity alumina (HPA) project in Western Australia.
The DFS forecasts an after-tax net present valuation (NPV) of US$543 million based on a 25-year open-pit mining, processing, and refining operation.
Landmark equity financing
FYI has also secured landmark equity financing backing for up to A$80 million from Luxembourg-based private equity group, GEM Global Yield LLC SCS.
The funding provides FYI with capital support for the development of its HPA project, particularly at key funding requirement stages.
It will also assist FYI’s board in making its final investment decision (FID) for the project.
The DFS assumes 25 years of production from a potentially long-term 50+ years mine life.
It targets production of HPA commencing in Q2 2022 through a beneficiation plant at the Cadoux project and a hydrochloric acid (HCl) leach and precipitation plant at Kwinana.
A total of 18 separate mining stages have been planned for the life of mine schedule with the average life of each stage being three years.
“Persuasive economic case”
Managing director Roland Hill said: “The DFS results represent a persuasive economic case supported by extensive and technically detailed studies.
“The extent of diligence in this body of work provides us with assurance in our innovative HPA refining process to be able to deliver a high quality, high purity product in a consistent and reliable manner.
“The DFS demonstrates that Cadoux has the merit to be developed as one of the sectors lowest capital and operating cost projects.”
“De-risking the project”
Of the funding, he said: “The financing facility assists in de-risking the project by providing access to equity funding at critical development stages.
“Sufficient equity funding is one of the larger challenges for a junior company; we intend to use this funding package to accelerate our development schedule.”