14/10/2008 - 11:02

Avanco slumps on $2m raising plans

14/10/2008 - 11:02

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Investors have slashed the share price of Perth-based Avanco Resources Ltd after it came out of a three-month trading halt on news that it plans to raise over $2 million.

Investors have slashed the share price of Perth-based Avanco Resources Ltd after it came out of a three-month trading halt on news that it plans to raise over $2 million.

Shares in the company have been placed in a halt since July 11 where its last trading price was at 36 cents. At the time the company said the trading halt was in place pending the release of an announcement relating to a capital raising.

This morning the company's share price slumped 45 per cent to 20c despite the overall market rising some 5 per cent at noon.

The share price drop came as the company said it would embark on a pro-rata renounceable rights issue where four shares will be issued, with four free attaching options, at five cents each for every five shares held.

Avanco said some 44 million shares will be issued to raise $2.2 million.

Funds raised will be used to continue exploration and fast track development feasibility at the Antas South deposit in Brazil.

Avanco listed on the local bourse in December last year.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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