(Ecofin Agency) - ASX-listed Kasbah Resources said it would raise $5.2 million to advance its Achmmach tin project in Morocco. The funds which will be raised through a rights issue, will be used to complete technical works on the site and commence work required as part of the project construction financing.

Ongoing technical works at Achmmach were initiated after the successful conducting of an independent technical review by AMC Consultant to determine the optimal route to commence the mine’s construction. The review helped identify a number of areas having the potential to lower overall risk of the project but also improve its bankability.

Kasbah’s goal is to conduct an updated definitive feasibility study which will help it advance talks for funding, and accelerate decision-taking process regarding the construction.

“Our Achmmach project is now in the final stages of optimisation and we expect to commence work on funding initiatives for construction at the conclusion of these activities,” said Richard Hedstrom, CEO Kasbah Resources.

The Achmmach tin project is a JV between Toyota Tsusho (20%), Nittetsu (5%) and Kasbah Resources (75%).

Louis-Nino Kansoun