News: Hazelwood Resources confident on capital raising for ferrotungsten plant

Hazelwood Resources (ASX:HAZ) is confident that it can meet a minimum subscription of $6,500,000 from a capital raising and placement of shortfall to an entitlements offer.

It is also exploring alternate funding arrangements that would fully repay its debt facility with Siderian Resource Capital and kick start the ATC ferrotungsten plant in Vietnam.

Under new executive chairman Mark Warren, who has experience in smelting and in business turnarounds to his credit, it is understood to have reduced overheads for the business from circa $6 million to $3 million per annum.

Hazelwood is the 60% owner of the largest, most advanced operating ferrotungsten plant in the world as well as owning a substantial tungsten resource base in Western Australia that could provide feedstock for the plant.

Tungsten is critical to industrial, mining and agricultural production with no substitutes.

With an improved balance sheet capacity and recapitalisation, the fortunes of the ATC plant could conceivably  turnaround into a positive EBITDA position in 2016/17.