Aussie apatite for London 24/04/2006 Queensland-based Monto Minerals plans to raise £17 million on AIM to develop an apatite, ilmenite and feldspar project.
Apatite, used to make fertilser to grow malting barley, ilmenite, a toothpaste and paint ingredient and glass component feldspar, are among the industrial minerals which Aussie-quoted Monto claims it will be able to produce commercially from its Goondicum project in central Queensland. Ambrian Partners is broker and nominated adviser to Aussie-listed Monto, which hopes to treble its present £8 million market value with the AIM float.
Chief executive officer Geoff Moore argues Goondicum could yield 150,000 tonnes of industrial minerals from 1.3 million tonnes of mineral sands annually for 25 years. The company says it has potential offtake agreements for half that.
Moore argues the £17 million sought should be enough to take Goondicum into production in the first quarter of 2007. Citing 'low costs', Moore suggests the project could be 'cash positive' in its second year of operation and 'profitable in Year Three'.
Monto's AIM float has not yet been priced, though the shares trade at the equivalent of 14.5p Down Under. It is one to watch out for.
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MOO Price at posting:
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