Perth-based Aquila Resources Ltd has agreed to subscribe, via its subsidiary Aquila Steel Pty Ltd, for 72 million shares in Cullen Resources Ltd at 10 cents each to raise $7.2 million.
The Aquila shareholding represents approximately 15 per cent of Cullen's current issued capital.
The full announcement from Cullen Resources Ltd appears below:
The Directors of Cullen Resources Limited (Cullen: ASX code - CUL) are pleased to announce that Aquila Resources Limited (Aquila: ASX code - AQA) has agreed to subscribe, via its wholly-owned subsidiary Aquila Steel Pty Limited, for 72 million Cullen shares at 10c each to raise $7.2 million. The Aquila shareholding represents approximately 15.0% of Cullen's current issued capital.
A portion of the funds raised will be used to continue contribution (30%) to the Mt Stuart Joint Venture iron ore exploration programmes and initiate baseline environmental studies in anticipation of the possible development of the Catho Well Channel Iron Deposit.
Aquila, 50% shareholder in the Australian Premium Iron Management Pty Ltd Joint Venture, has interests in total resources of 203Mt @ 57.4% Fe in the West Pilbara through the Mt Stuart and Red Hill Iron Ore Joint Ventures.
After the placement, Cullen will have approximately $8.5M in cash.
The additional funds will allow Cullen to expand and intensify exploration programmes over the various projects it has generated in WA, SA and the NT including: a number of gold targets in the North East Goldfields and near Coolgardie in WA; a palaeochannel uranium target area in the vicinity of the Maitland uranium deposit; and, various other tenements where it can initiate exploration
as they progressively become approved throughout 2008 (see Quarterly Report to ASX on 30/10/07).
Dr Chris Ringrose, Cullen's Managing Director commented: "Cullen welcomes Aquila as a cornerstone investor. Aquila is a substantial resources company and, through its own holdings and Joint Ventures, has an emerging role as a potential iron ore producer from its substantial land bank in the West Pilbara. We look forward to working together with Aquila to take Cullen to its next level."