Resources junior Golden West Resources today reached agreement on a $2.45 million share placement with a major middle east investor.
Resources junior Golden West Resources today reached agreement on a $2.45 million share placement with a major middle east investor.
The placement of seven million ordinary fully paid shares will be made to Dubai based Falak Holdings.
Falak's chairman Abdulrahman Falaknaz is a prominent Dubai business figure, currently involved in the construction of a multi billion dollar project, Dubai Sports City.
Falak Holdings is a diversified group with major investments in Canada, Turkey, India and Asia, and the funds from the placement will be help promote Golden West's exploration programs at its Wiluna iron project in north-east Western Australia.
The announcement comes on the back of Golden West Resources December 2005 quarter results, which reinforce the company's commitment to the Wiluna project.
The company plans to develop the project in two stages, the first being the commencement of production of high grade surface direct shipping iron, followed by identifying the magnitude of the resource required to justify further infrastructure.
Golden West is one of several companies, including Murchison Metals, Gindalbie Metals and Midwest Corporation seeking to establish or expand iron ore mining operations in the mid-west.
Below is the full announcement:
Golden West Resources Limited (ASX:GWR) is pleased to announce that it has reached agreement to place 7 million ordinary fully paid shares to raise $2,450,000.
The placement will be made to Falak Holding LLC, a significant international investor from Dubai in the United Arab Emirates.
Falak Holding LLC is a diversified group involved in many business activities in Dubai, the Arabian Gulf, and with major investments in Canada, Turkey, India and the Far East.
Group Chairman Abdulrahman Falaknaz is one of three partners building Dubai Sports City, a multi billion dollar real estate and sports-facility development currently under construction. Mr. Falaknaz is an Executive of various United Arab Emirates Sports Federations and is a member of the UAE Olympic committee and Chairman of the Dubai Cricket Council.
The proceeds from the placement will be directed to the exploration programmes and targeting early mining operations planned for the company's Wiluna Iron Project located North East of the Port of Geraldton in Western Australia .
Development of the Project will be progressed concurrently in two stages:
Stage 1: Production from high grade surface direct shipping hematite using existing infrastructure to generate early cash flow.
Stage 2: The development of the major iron project in stages. The immediate goal is to define resources of the magnitude that will justify the required infrastructure.
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