Cougar to raise $1.6m in placement

South Guildford-based Cougar Metals NL will raise $1.6 million through a placement to fund an assessment of its Pyke Hill Nickel project and soil sampling programs on its Alta Floresta Gold Project in Brazil.

The full text of a company announcement is pasted below

Cougar Metals NL (ASX code: CGM) is pleased to announce a $1.6 million placement to a sophisticated investor group with extensive experience with junior exploration companies. The placement comprises the issue of 10,819,497 new shares at $0.15 per share to raise approximately $1.6 million. The placement is being made to a group of sophisticated investors utilising the Company's 15% capacity under the ASX Listing Rules. The monies raised through the placement will be used to fund:

• an assessment of the potential of the Pyke Hill Nickel Project in Western Australia to support an economic heap leach operation;
• the completion of major soil sampling programs at the Alta Floresta Gold Project in Brazil;
• the expansion of the Company's recently established mineral drilling business in Brazil; and
• general working capital requirements.

The introduction of the new investor group to Cougar will deliver a number of significant benefits to the Company, including access to additional technical expertise and new project opportunities. In addition, the investor group will assist in improving the market's recognition of the value of the Company's assets.