Sky Metals Ltd. has raised AU$20.5 million to fund the next stage of development at its flagship Tallebung tin project in New South Wales.
The company will issue 132.2 million shares at 15.5 cents per share, followed by a second tranche of 3.2 million shares.
Following the capital raise, Sky Metals will be well-funded to advance Tallebung through continued resource expansion and in-fill drilling to increase confidence in the recently discovered high-grade tin-silver-tungsten zones.
The company also plans to deliver an updated mineral resource estimate next quarter to underpin development studies, as well as prepare for upcoming mining feasibility studies to position Tallebung for future production.
Sky Metals CEO Oliver Davies said: “This pivotal capital raising puts Sky in a very strong position to accelerate development of the Tallebung tin project.
“The commitment shown by the board is also greatly appreciated and reflects our shared focus on driving the business forward as we enter an important period of growth and development, with Tallebung leading the portfolio as a unique near-term tin production opportunity and a key driver of Sky’s next phase of value creation.”
The Tallebung project is the site of large-scale historical tin mining in central western New South Wales with tin first discovered in the 1890s. An Exploration Target at Tallebung of approximately 23 to 32 million tonnes at a grade ranging between 0.14 to 0.17 per cent tin at a cut-off grade of 0.08 per cent tin has been defined from the drilling completed to date.
Additionally, a portion of the funds will be allocated to advancing the company’s Doradilla project, including follow-up work to build on the recent metallurgical breakthrough that delivered a saleable tin concentrate with 78 per cent tin recovery.
Planned work at Doradilla will continue to expand the mineralised footprint along the now 10-kilometre-long corridor, positioning the project for further growth.
This program will demonstrate the project’s potential to mature into a future large-scale, long-life tin deposit.