Musto Explorations says it’s “continuing to explore a number of alternatives for improving its working capital position.” President H. Lutz Klingmann confirms that some of the funds would be used to further develop Musto’s Apex project near St. George, Utah.
He notes that significant improvements have been made in the leach extraction for both gallium and germanium. Recoveries averaged 95.8% and 76.1% respectively in April. The overall recovery for gallium is currently higher than the 79% projected in the final feasibility study, he adds.
Plant throughput has increased from 856 tons per month in 1986 to 1,664 tons during April. A number of smaller capital projects are in progress which are designed to improve recoveries, increase plant throughput, lower operating costs, and increase the purity of final products.
Musto has reached agreement with the Handelsbank, N.W. of Zurich, Switzerland for the release of $1 million(US) under a $2 million revolving line of credit. The start of repayments of principal under an agreement concluded Feb 28, 1986 has been deferred to next January. Musto has agreed to issue a non- transferable warrant to Handelsbank for up to 220,000 shares at $2.35 per share.
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