23/11/2007 - 14:14

BigHill to raise $7m to fund tungsten exploration

23/11/2007 - 14:14

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Perth-based BigHill Resources Ltd has today opened its initial public offer, seeking to raise $7 million to fund acquisitions and exploration of its Cookes Creek Tungsten project.

Perth-based BigHill Resources Ltd has today opened its initial public offer, seeking to raise $7 million to fund acquisitions and exploration of its Cookes Creek Tungsten project.

The company, which will issue 35 million shares at 20 cents each to raise the money, will also accept a further $3 million in oversubscriptions - allowing for a further 15 million shares to be sold at 20 cents each.

Orignially known as Kiora Holdings Pty Ltd, BigHill was spun-out from Perth-based Hazelwood Resources Ltd earlier this month to develop the 145 sqkm project, located 45km north east of Nullagine.

Hazelwood will retain a 10 per cent stake in the company following listing, while its shareholders have the right to subscribe to 28 millon shares - 80 per cent of shares offered - in a pro-rata priority entitlement.

Subject to the company reaching the minimum subscription, each eligible Hazelwood shareholder will be entitled to 3 BigHill shares for every 8 Hazelwood shares held by an eligible Hazelwood shareholder on the record date.

The company is chaired by Hazelwood chair Mark McAuliffe, who is joined on the board by managing director Martin McQuade and Ian Richer. Carol New serves as company secretary.

Ascot Securities has been appointed broker to the offer, while Rix Levy Fowler will serve as Auditor and Investigating Accountant. Steinepreis Paganin will serve as solicitors to the company.

The priority offer will close on December 3, with the general offer closing on January 25.

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