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Aus Tin aims to resume operations at Granville in March 2020 quarter

Aus Tin Mining Ltd. is planning to resume operations at its Granville tin project in Tasmania, Australia, in the March quarter of 2020.

The restart is conditional on the company securing a funding package of up to A$1.5 million from Ten Mining Pty. Ltd., a Consultel Cloud-backed company formed by an unrelated group specifically to invest in Granville.

The company said Dec. 13 that it plans to convert the loan into shares of unit Ten Star Mining Pty. Ltd. and conduct an IPO with the Granville project as the foundation asset.

The investor intends to convert the A$1.5 million loan into a 40% equity stake in the demerged unit before the public offering.

Amid ongoing issues at the project, Aus Tin decided in September to delay further work on the stage one development at its Taronga tin project in New South Wales as it was planned to be funded from Granville's cash flow.