40% acceptances for Aztec rights issue

Aspiring iron ore producer Aztec Resources Ltd has reported that applications had been received for more than 40 per cent of its $42.3 million rights issue.

The funds raised will provide significant capital required for the re-development of the Koolan Island iron ore project, located 130 kilometres north of Derby off the Kimberley coast.

Aztec CEO and chairman Ian Burston said that participation level was within expectations and that the balance of the shortfall would now be allocated to a number of institutional investors in the UK, Asia and Australia who have requested priority allocations under sub-underwriting agreements.

"In addition, Aztec's major shareholder Cambrian Mining plc, which holds 19.5 per cent of the issued share capital of Aztec, will also participate as a sub-underwriter in the shortfall," he said.

Mr Burston said the Koolan Island project remained on track for first ore shipments to commence in late 2006.

"The rights issue, together with the exercise of options in July and the remaining funding being sourced from customers and/or debt providers will enable Aztec to become the next Australian iron ore producer," he said.

Construction activities on Koolan Island will commence in March following anticipated granting of environmental approvals and mining licences.