03/12/2009 - 15:12

Cazaly terminates $4m capital raising

03/12/2009 - 15:12

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Cazaly Resources has had to terminate a $4 million capital raising after it received indications that it was unlikely to get the funds.

Cazaly Resources has had to terminate a $4 million capital raising after it received indications that it was unlikely to get the funds.

Cazaly was due to issue 10 million shares at 40 cents each to investors as part of a placement that was arranged by Nine Star Australia Trading Developing.

The raising, which falls outside the ASX 15 per cent annual capacity, was approved by shareholders last month.

Funds were to be applied to the Parker Range iron ore project in WA.

In a statement today, Cazaly said the funds have yet to be deposited and "indications are that the funds will not be made available within a suitable timeframe".

"Accordingly Cazaly has decided to terminate all arrangements with respect to the Placement," the company said.

Cazaly stressed it has sufficient funds to continue with exploration and finalise the pre-feasibility study into Parker Range, and added that it had received numbers expressions of interest from potential partners to assist in the project's development.

Shares in Cazaly closed unchanged at 30.5 cents.

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