Cassiar raises funds, appoints sales agent

Toronto-based Cassiar Magnesium (CIR-T) is forging ahead with plans to expand asbestos production and develop a magnesium metal project at its newly revived Cassiar operation in northern British Columbia.

The company produces premium grade and requested specialty grades of chrysotile fibres at an annual rate of 27,000 tonnes, up from 18,000 tonnes when operations began early this year. Within three years, the company aims to produce 50,000 tonnes annually, using both dry and wet processes. Increases may be planned in the future to boost the plant to its ultimate capacity of 100,000 tonnes.

The Cassiar properties contain surface stockpiles of 6 million tonnes of primary ore and 17 million tonnes of serpentine tailings. The surface stockpiles and mine ore contain 8-10% chrysotile fibre, whereas the serpentine tailings contain about half that amount. In addition to 3.5 million tonnes of extractable chrysotile fibres, the tailings and surface and mine ores contain 23.5% magnesium metal.

Cassiar Magnesium has arranged an $18-million financing that will be used to retire $14 million of existing debt, with the remainder reserved for working capital. The debt retirement will allow the company to use cash flow from the current operation to expand production and develop the magnesium metal project at a the annual rate of 150-200 million lbs.

In other news, the company appointed London-based Corommandel to be its exclusive agent for the sale of Cassiar Brand Chrysotile Fibres world-wide, excluding Japan.