Australian tin developer Elementos (ASX: ELT) has raised A$29.5 (approximately US$21 million) from Australian investor L1 Capital.
This investment will make L1 Capital a 19.99% shareholder in the company.
The funds will support advancement of the Oropesa tin project in Spain and the company’s investment into the Robledollano tin smelter as well as the Cleveland project in Tasmania.
Through its mine production from Oropesa and refined tin production from the Robledollano smelter, Elementos intends to become Europe’s only vertically integrated tin producer.
Elementos Chairman Andy Greig said the company was “pleased to welcome L1 Capital as a major, highly credentialed, ‘high conviction’ institutional investor”.
“Alongside Metals X, L1 Capital represents the second major investor to enter our register over the last nine months. The backing of these major investors provides support to [the] company’s strategy, added security and valued optionality as we head toward FID and detailed project financing discussions”, he continued.
This news comes amid a remarkable rally in the tin price and a refreshed surge in investor interest in the metal.
Our view: ITA’s Investing in Tin Seminar in December highlighted the urgent need for capital flows into new mine projects, so we are pleased to see continued, large investments into future supply as the market heads towards a forecasted deficit.
Elementos is a member of ITA’s Explorers & Developers Group.
