Symbol Mining Ltd’s [ASX:AL1] share price is trading 10% higher, at $0.021 on news that it has executed two agreements to deliver an added $3.7 million in funding.
The high grade and high margin lead and zinc explorer, developer and producer released an announcement today, updating investors on its Macy project, as well as its first sale agreement.
Symbol Mining’s share price sees first revenue
After securing the sale contract for the first shipment of Direct Shipping Ore (DSO), Symbol Mining’s Macy project has seen its first revenue. Its first cash flow is set to happen around 12 months from its listing, which is also provided by the sales contract.
The funding is for working capital requirements, as shipments start to ramp-up pace, exploration boosts, and giving Symbol Mining the freedom to take advantage of the additional processing unit currently under construction, as stated in its ASX media announcement.
The company has also secured US$2 million under a noble loan facility with Noble Resources. Symbol Mining will receive an increase to its loan facility limit bringing it to US$5 million, as well as an extension to repayment dates for its drawdown by three months, pushing back the final maturity date to September next year.
Securing the funding is likely helping Symbol’s rising share price, so investors could expect to see a slight dip come tomorrow’s trading as investor excitement settles.
Symbol’s 2019 forecasts
Symbol Mining’s CEO, Mr Tim Wither said:
‘The additional funding and the commencement of revenue puts the Company on a solid footing and provides the ongoing funding for our planned activities, without the need to undertake an additional capital raising. We are pleased to have achieved this milestone and greatly appreciate the continued support from Noble and from our new investors, who after their due diligence, have confidence in Symbol and our future successes’
Being able to fund these activities without a capital raising will look positive for potential investors, but the real test for Symbol Mining is to see whether the market and prospective investors have confidence in the company.
A good indicator will be how the stock is trading tomorrow.
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