New management at Van Dieman Mines believes that the Scotia tin mine should start producing by the end of 2008.
Van Dieman is developing tin mining interests in Tasmania. It has failed to make much progress in recent years but the new management has pushed forward with dewatering the mine overburden and adapting the plant and machinery.
It hasn’t been easy because Van Dieman has lacked cash since its Australian finance provider failed to come up with funds. Galena has become a strategic partner and provided a £5m convertible loan facility and bridging finance of £750,000.
Galena intends to switch £2m of the convertible loan into shares later this year as part of a proposed financing.
Once Scotia is up and running then it should generate cash for the group. The Endurance project should start producing later next year.
More than 50% of tin is currently used for soldering now that lead has been banned in EU countries.
At 3.75p a share, Van Dieman is valued at £5.78m.
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