Aguia Resources Ltd. [AGRL-TSXV; AGR-ASX] shares advanced Monday April 1 after the company said it has raised $874,708 from a private placement financing, and expects to bring in an additional $200,000 from loans provided by certain officers and directors.
The non-brokered private placement consists of 7.3 million ordinary shares priced at 12 cents per share.
The company said proceeds of the placement are earmarked for projects in Brazil, including the Rio Grande Copper prospects and the Tres Estradas phosphate deposit. Proceeds will also be used to strengthen the company’s balance sheet and to fund previously announced payments for the acquisition of copper and phosphate properties.
On Monday, following a resumption in trading, the shares rose 18.75% or $0.015 to 9.5 cents on volume of 1.9 million. The shares trade in a 52-week range of $0.075 and 34 cents.
Aguia’s primary focus is on exploration and development of mineral projects in Brazil. The key projects are located in Rio Grande do Sul, an agricultural area, which is highly dependent on phosphate imports.
The company recently said it has completed all necessary requirements to obtain an environmental permit for the Tres Estrades Project. It said the next step involves the application for an installation permit that will set the stage for construction to start.
Tres Estrades is estimated to contain 83 million tonnes of measured and indicated material, grading 4.1% P2O5 (phosphoric acid), using a cut-off of 3.0% of P2O5. On top of that is 21.8 million tonnes of inferred material, with an average grade of 3.67% P2O5.
At Tres Estrades, Aguia forsees the development of an open-pit truck and shovel operation with an estimated lifespan of 16 years. Production of aglime from reclaimed tailings is expected to add another 20 years to the life of the operation, bringing the total lifespan to 36 years.
With an average capacity of 300,000 tonnes per year of phosrock, the average annual feed to the processing plant is expected to be 1.3 million tonnes of oxide ore in Phase 1, and 3.3 million in Phase 2 of the fresh carbonate ore, the company has said.
The expected result is a life-of-mine production of 4.7 million tonnes of phosphate concentrate and another 32.9 million tonnes of aglime, averaging about 300,000 tons of phosrock annually over 16 years and one million tonnes of by-product aglime annually over 33 years.
Tres Estradas is located in close proximity to key infrastructure, including roads, a rail line through the property and power. Major fertilizer blenders are located just 200 km away at Porto Aegre.
Meanwhile, the company said certain directors and officers of Aguia have agreed to provide non-interest bearing, unsecured loans to the company totalling $200,000.
Subject to the receipt of shareholder approval at the company’s next shareholder meeting, the loans will be convertible into ordinary shares. The conversion price will be the greater of $0.12 or 5-day value weighted average price of the Aguia shares at the date shareholder approval is obtained.