Australian Bauxite halts two-day trading, gets ready for capital raise
On 20th May 2021, the bauxite explorer, producer and mining company, Australian Bauxite (ABX) has called for a two-day trading halt, as it all set to tap investors for some new funding through a capital raising plan.
However, ABX is yet to detail the amount it is going to raise or the way to raise the funds, neither the company commented on how it plans to use the cash boost.
On 24th May 2021, the complete details of the capital raise will be announced, although, there a possibility ABX can announce the details earlier. Hence, once the raising details are unveiled, then the trading halt will be lifted.
Australian Bauxite has unearthed several bauxite deposits in Queensland, New South Wales and Tasmania, and has been mining and processing the material.
ABX has been developing modern technologies for the material through its subsidiary Alcore, aligning with bauxite mining.
The process to chemically refine bauxite and aluminium smelter waste into aluminium fluoride is an important material for use in aluminium smelting is one of the new technology developments. Aluminium fluoride is also being investigated for potential use in lithium-ion batteries.
ABX latest financial report very clearly stated that the company had just over $930,000 worth of cash in the bank at the end of March 2021, after spending around $420,000 on operating activities over the March quarter.
With this rate of spending, ABX can hold just over six months’ worth of cash in the bank as of 31st March 2021.
The upcoming capital raise will be a simple balance-sheet booster or ABX is coming up with something big that is still a folded chapter.
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