27/11/2007 - 10:42

Aquila takes 15% stake in Cullen

27/11/2007 - 10:42

Bookmark

Save articles for future reference.

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.

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."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options