Aztec Resources Limited announced today that the listed options, due to be exercised on or before 31 July 2006, have been fully underwritten by Lonsec Limited with the lead manager being Cartesian Capital Pty Ltd.
Exercisable at 17 cents each, the options were issued at no cost to shareholders who participated in the 1 for 2 rights issue completed in January 2006. The January 2006 rights issue raised $42.3 million of equity capital and the exercising of the listed options on issue will raise an additional $42.3 million of equity capital.
It is expected that the net proceeds of approximately $40 million from the exercising of the options will be received by Aztec in early August 2006.
Aztec Resources managing director Peter Bilbe said the underwriting of the options is further recognition of the quality of the Koolan Island Iron Ore asset.
"Koolan Island is on track to be Australia's next iron ore mine and the Company acknowledges the support provided by Australian and AIM investors to complete this equity raising," Mr Bilbe said.
"On 26 June 2006, construction activity commenced on the $125 million project with the driving of steel piles for the jetty, off-site fabrication of the shiploader and crusher/stacker components, clearing and earthworks for the industrial area and building of the permanent accommodation village."
Negotiations with a bank syndication are well advanced to provide the balance of the funding required to complete the infrastructure construction and mine development of the Koolan Island Iron Ore project. The directors expect to be able to commence drawdown on the bank facilities in September 2006.
