10/01/2011 - 08:42

Avalon announces $10.4m cap. raising

10/01/2011 - 08:42

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WA-based junior explorer Avalon Minerals has announced a $10.4 million capital raising, to fund its Viscaria copper and iron ore project in northern Sweden.

Avalon announces $10.4m cap. raising

WA-based junior explorer Avalon Minerals has announced a $10.4 million capital raising, to fund its Viscaria copper and iron ore project in northern Sweden.

Avalon, which is chaired by former Gindalbie Metals director David McSweeney, said the funds would provide working capital to complete a feasibility study and undertake drilling programs at the Viscaria project.

The raising will include a placement of 22,841,542 shares at 18 cents per share to existing stockholder, Malaysian investor Dato Siew Mun Chuang.

Avalon's full announcement is below:

AVALON TO RAISE $A10.4M VIA PLACEMENT AND FULLY UNDERWRITTEN RIGHTS ISSUE

Overview

- Placement to raise approximately A$4.1million at a price of 18 cents per share

- Fully underwritten one for five non-renounceable Entitlements Issue at 18 cents per share to existing shareholders

- Existing shareholders may also apply for a proportion of any Entitlements shortfall

- Proceeds from the equity raising to be used by the company to increase mineral resources and to complete the Bankable Feasibility Study of the Viscaria Copper-Iron project.

Details

Australian-based minerals Company Avalon Minerals Ltd (ASX: AVI; "Avalon") is pleased to announce that it is currently raising up to A$10.4m to fund its drilling program and Bankable Feasibility Study at the Company's advanced Viscaria Copper and Iron Ore Project, located in northern Sweden.

The raising will include a placement of 22,841,542 shares at 18 cents per share to a new cornerstone Malaysian investor, raising A$4.1 million ("Placement"), and a one-for-five non-renounceable Entitlements Issue at 18 cents per share ("Entitlements Issue") to existing shareholders including the placement participant.

The Placement has been made to a company associated with existing shareholder and successful Malaysian businessman, Dato Siew Mun Chuang. The A$4.1m Placement funds have been received.

The Entitlements Issue has been fully underwritten by Avalon Non-Executive Director, Tan Sri Abu Sahid Mohamed. Shareholders who apply for their full Entitlements may also apply for a proportion of any Entitlement shortfall. Eligible Shareholders will shortly receive further details on how to participate in the Entitlements Issue.

Use of Proceeds

The funds raised from the Placement and Entitlements Issue will predominately be applied to the following activities:

- Bankable Feasibility Study of the development of the Viscaria Copper-Iron Ore project

- Resource drilling programs over the A Zone, B Zone and D Zone copper and iron ore mineralisation at Viscaria

- Drilling at the D Zone South exploration target

- Exploration of the Avalon tenure surrounding Viscaria

- General project working capital

 

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