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Kasbah Resources Increase Cash Position To A$21.9m With IFC Investment

Kasbah Resources (ASX: KAS) has increased its cash reserves by just over A$4 million after International Finance Corporation, one of the world's largest finance providers, exercised 16.25 million options at $0.25 each.

United States-based IFC is a member of the World Bank Group.

This new investment follows close on the heels of a $1.7 million capital injection by Traxys LP, which exercised 6.65 million options at $0.25 each.

Highlighting the size of the investors Kasbah is attracting, financing firm Traxys has an annual turnover of around $5 billion.

In the past two weeks Kasbah has added $5.7 million to its cash reserves. This combined with the recent $4 million first staged payment from Toyota Group company, Toyota Tsusho Corporation, takes Kasbah's total cash position to about $21.9 million.

In March Kasbah made the strategic move to allow Toyota Tsusho to farm into its Achmmach Tin Project in Morocco, up to a 20% share.

Importantly, the deal further de-risks the development of Achmmach, one of the largest undeveloped tin deposits in the world.

To earn its 20% interest, Toyota Tsusho must make a series of payments to Kasbah which will be used for exploration and development works at Achmmach, as well as finalise a joint venture agreement.

Toyota Tsusho trades around 8% of the global tin market and more than 50% of all tin consumed in Japan.

Investor interest is growing in Kasbah as it continues to unearth new mineralisation at its Achmmach Project.

Earlier this week the company revealed it had intersected a new, unexpected zone of high grade mineralisation indicating a new tin lode at Achmmach.

Importantly, new high grade tin intercepts at the Gap Zone are outside the current 2012 Resource model.

Notable assays included 24 metres at 1.21% tin from 296 metres, including 7 metres at 2.02% tin, 31.1 metres at 1.54% tin from 223 metres, including 17 metres at 2.13% tin and 5 metres at 3.18% tin, and 8 metres at 1.74% tin from 339 metres.

Achmmach is a sizeable tin project, with a growing tin resource. There is potential to link the resources in the west to resources in the east.

Exploration is moving forward at pace with five diamond rigs active which will continue with infill and extensional drilling of the Meknes Trend.

The Meknes Trend is currently defined by drilling for about 1,160 metres and is open in both directions along strike and at depth.

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