LONDON (ShareCast) - Toledo Mining (LSE: TMC.L - news) has conditionally raised £3.36m through a share placement to fund a drilling
campaign at its Berong nickel laterite project in the Philippines.
It's placing 12m shares at 28p each. After expenses the company will be left with £3.24m.
Toledo has a target of defining a JORC resource of about 40 million tonnes at Berong, which it thinks is enough to support a mine producing around 20,000 tonnes of mixed hydroxide product a year. It expects to start drilling in late 2009.
It will also finance essential development work at the Ipilan project and normal operating activities through to the end of 2010.
At the end of May, Toledo had net cash holdings of £2m ($3.2m), and has outstanding loans due from Philippine partners, payable to Toledo, of $12.4m.
The placing is conditional on shareholder approval at an EGM on 31 July.
Broker Ambrian thinks the future is bright "as the optimal development route is identified".
"There are risks, including permitting and finalisation of appropriate processing methods, but we think the current share price more than prices the risk in, making Toledo an outstanding investment at current levels."
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