ZincOx raises £6.25 million in placing
Zinc recycling specialist ZincOx Resources (LON:ZOX) this morning announced a placing to raise £6.25 million. The firm will be using the cash raised to fund the initial development costs of the second phase of its waste recovery plant in South Korea, as well as to advance a roll out of its technology to the US, Turkey and Thailand.
Some 11.2 million new shares are being placed at 56 pence each in order to raise the funds.
ZincOx's Korean recycling plant is intended to produce more than 90,000 tons per annum of zinc in concentrate when in full production - the same capacity as a medium-to-large zinc mine.
The plant is designed to treat 400,000 tons per annum of dust from electric arc furnaces - which are widely used in steelmaking. Sampling projects during the past four years have found that the weighted average grade of this dust is 23 percent zinc and 26 percent iron.
Korea currently generates around 380,000 tons of electric arc furnace dust but this is estimated to rise to 400,000 tons during the next few years.
"I am delighted to announce this placing which will provide the cornerstone for the company's full development of the Korean Recycling Plant and help to accelerate the roll-out of similar plants elsewhere in the world," said Andrew Woollett, ZincOx's executive chairman. "It is particularly pleasing that investors are willing to provide funds in such difficult markets and I am pleased to welcome new institutional shareholders."
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