Kumova-backed Pure Alumina claims progress in Toronto
Investors have been re-enthused by Pure Alumina’s effective claim all is going well with its planned A$27 million Polar Sapphire acquisition in Canada
17th May 2019
Resources Rising Stars
Investors have been re-enthused by Pure Alumina’s effective claim all is going well with its planned A$27 million Polar Sapphire acquisition in Canada, with the Tolga Kumova-backed microcap enjoying a couple of strong headline trading sessions (reports MiningNews).
Pure Alumina shares more than doubled after it reported the Polar pilot plant in Toronto had been operating well for the past two weeks producing high purity alumina from use of proprietary technology.
Pure Alumina's promotional announcement comes as an underwritten share purchase plan seeking $1.25 million of interim funding gets underway, with pricing of the new shares to be decided later this month with reference to the then-share price.
Pure Alumina started the current quarter with $288,000 cash.
Consideration for the Polar acquisition is C$13.75 million in Pure Alumina shares and $12 million in cash, with Pure Alumina looking towards raising A$30 million in a combination of debt and equity.
Polar's HPA is sold to the mainstay synthetic sapphire sector, the company is working on products for the "rapidly expanding HPA coated lithium battery separator market" - to reduce the risk of the batteries overheating and catching fire.
The price such HPA will command is unknown, with other potential ASX-listed producers in the budding sector citing numbers from US$24,000/t to $50,000/t and beyond.
The Polar pilot plant in Toronto has capacity of about 150tpa, with Pure Alumina's plan being to increase that to 1000tpa within 12 months of acquisition and following capital spend of about $12 million.
Pure Alumina is the old Hill End Gold, with Melbourne-based resources sector entrepreneur Kumova getting involved in the change of direction of the company in 2017.
As of late last year Kumova held 9.29% of the company.
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