West Perth-based gold explorer Adamus Resources Ltd will raise approximately $13 million to fund it's current Feasibility Study and to accelerate exploration drilling at its Southern Ashanti Gold Project in Ghana.
The funds will be raised through the issue of up to 20 million ordinary shares at a price of $0.65 per share to institutional and sophisticated clients of Euroz Securities Ltd and selected other institutional investors.
The company said the decision to raise further funding and commence the Feasibility Study follows very positive results from the Scoping Study into the economics of developing the project, announced in February 2006.
In addition to the Feasibility Study, the Company has committed a further 25,000 metres of exploration drilling, aimed at adding additional ounces to the already significant gold resource base of 22Mt @ 2.1g/t for 1,500,000 ounces.
The offering is subject to shareholder and regulatory approval, including approval of the TSX Venture Exchange. A meeting of the shareholders of the company will be held within the next six weeks to seek the required approval. A notice of meeting will be sent to shareholders shortly. The Brokered Offering is also subject to firm bids being received for the total number of shares on offer, pursuant to the Offering and prior to the shareholders' meeting.
Shares issued to North American subscribers will be issued pursuant to prospectus exemptions in certain provinces in Canada and registration and prospectus exemptions in the United States. Shares issued to Australian subscribers will be issued under s.708 of the Australian Corporations Act.
Adamus will pay Euroz a placing fee of 5 per cent of the gross proceeds received pursuant to the Brokered Offering.
At 845 WST, Adamus' shares were down 2 cents to 74 cents.
