Standard Tolling (TON.V) has announced it has closed a private placement raising C$1.8M through issuing just over 12M units. Each unit was priced at C$0.15 and consisted of one common share and one warrant that allows an investor to purchase an additional share at C$0.25 within two years. This is a pretty good deal for Standard Tolling as this new placement was conducted at a 50% higher price than the previous placement in the fall of last year.
According to CEO Len Clough, the additional capital will allow Standard Tolling to accelerate its capital expenditures and TON is now incorporating the construction of a power substation which would allow the mill to be connected to the already established power grid. This could potentially result in a much lower operating cost as Clough expects an energy cost saving of 75%.
We will be in touch with the company’s management team shortly for a more extensive update on what’s going on on the ground in Peru.
> Click here to read the most recent press release
Disclosure: The author holds a long position in Standard Tolling. Standard Tolling is a sponsor of the website. Please see our disclaimer for current positions.
