Completes A$11.2M Placement to Accelerate Tisma Development to Meet Customer Demand
Proceeds from the Placement, in combination with existing cash reserves, will be used to accelerate the development of the Tisma tenement, the zircon rich deposit acquired in February 2021, as well as for general working capital purposes. The funding will be utilised for PYX to invest in its in-house mining at the Tisma deposit, together with the installation of a Mineral Separation Plant and the required investments in logistics to meet the demand of growing high-tech applications.
The zircon pricing environment is expected to remain strong in the medium and long term, as lack of supply continues to grow. As China's economy expands and European economies recover from the pandemic, supply issues are compounded. In a time of a global switch to green energy, premium zircon, such as PYX's, is in great demand for creating fused zirconia and other products, where standard zircon cannot be used. This is relevant for the world to tackle the climate crisis and to produce electric vehicles, solar cells and other green energy technologies.
PYX's Chairman and Chief Executive Officer, Oliver Hasler, said: "The success of this transaction is an endorsement of PYX's business strategy as a consolidator of premium mineral sands deposits in Indonesia, supported by strong sales volume growth. Actual market conditions are perfect, in the midst of a strong mineral sands industry up-cycle, for our growth strategy commencing with extraction in our newly acquired Tisma deposit in the near future. Also, for the world to tackle the climate crisis there will be need for a sharp increase in metal supplies required to produce electric vehicles, solar cells and other green energy technologies, such as zircon".
The Placement will comprise the issue of approximately 10.9 million new fully paid ordinary shares ("New Shares") at an issue price of A$1.03 per share, which represents a 19.5% discount to the last trade of A$1.28.
The New Shares will be issued in a single tranche, pursuant to the Company's existing 15% placement capacity and will not require shareholder approval.
Settlement of the Placement is expected to occur on Wednesday 23rd June 2021 and the New Shares will rank equally with the Company's existing shares on issue.
Phoenician Advisory Services Limited served as lead manager to the Placement.
The Company notes that it continues to explore a dual listing of the Company's ordinary shares on the Standard Segment of the London Stock Exchange (LSE) (refer announcement dated 25 May 2021) within the next three months and, should this eventuate, may conduct a further placement of shares as a part of the listing process to create liquidity on LSE and accommodate European investors.
About Pyx Resources Limited
PYX Resources Limited (NSX:PYX) is a global producer of premium zircon listed on the National Stock Exchange of Australia. The Company's flagship asset is the Mandiri mineral sands deposit, located in the alluvium sediment rich region of Central Kalimantan, Indonesia. Boasting the world's 5th largest producing deposit of zircon, PYX is a large-scale, near-surface open pit operation in production since 2015 and with exploration to date validating the presence of additional Valuable Heavy Minerals such as rutile, ilmenite among others within its mineral sands.
Pyx Resources Limited