FYI Resources raises $2.7 million to advance high purity alumina project

FYI Resources Ltd (ASX:FYI) has received firm commitments to raise up to $2.7 million through a two-tranche placement to sophisticated and professional investors at 6 cents per share. The placement received strong support from local and international investors as well as several existing major shareholders including Regal Funds Management which has materially increased its 11.5% stake in the company. FYI has also welcomed a new cornerstone investor, Ken Hall (formerly of Pacific Energy), who has subscribed for $500,000 worth of shares. Proceeds from the placement will be used to advance FYI’s strategy to produce high purity (99.99%) alumina (HPA) from the company’s fully integrated HPA project in WA. Ramping up operations FYI plans to use the funds for ramping up production of HPA, marketing activities, ongoing test work, refinement of the production process and further trial production. The company recently completed stage two production of HPA from its pilot plant facility in Welshpool, WA. HPA products generated from the pilot plant is being checked for quality control and assurance at an independent laboratory in the US. Key milestones for September quarter Progress project partner development discussions; Further pilot plant R&D trial operation and HPA production for continuing customer qualification; R&D on HPA specialty product finishing to potential off-take party specifications; Continued customer engagement and follow up on product qualification assessment; Continue off-take discussions with potential customers; Respond to customer feedback enquiries for HPA product development; Advance the project final engineering decision (FED); Progress Final Investment Decision (FID).